Cost Accounting Book: Cost Management 6th edition by Blocher.

| January 30, 2017

Question
Cost Accounting

Book: Cost Management 6th edition by Blocher.

Topic: Short-Term Planning: Cost-Volume-Profit Analysis

9-33 CVP Analysis Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for 2013 as follows:

Sales

$46,000,000

Operating expenses:

Variable expenses

$32,200,000

Fixed expenses

7,500,000

Total expenses

39,700,000

Operating profit

$6,300,000

Required

Determine the break-even point in sales dollars.
Determine the required sales in dollars to earn a before-tax profit of $8,000,000.
What is the break-even point in sales dollars if the variable cost increases by 12%?

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