The following information is a set of âcheck figures.â That is, these are final numbers for several parts of the Problem Set. This will give you a target and some confidence when you complete each problem.
Please note that you must show all of your work to get to these check figures to receive credit for that problem ⦠especially the ones where you are given the final answers!
Sixth Edition:
(1) E15-21 (p. 15-26): Cost Behavior Analysis Using High-Low Method
(c) Total costs = $35,680
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(2) P16-29 (pp. 16-30 and 16-31): Contribution Income Statement & Basic CVP (parts a, b, c, and d only)
(b) Monthly breakeven in units = 1,645 (rounded up)
(d) Required sales = 2,311 (rounded up)
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(3) P16-31 (p. 16-31): CVP Analysis & Special Decisions
(c) Point of indifference between alternatives = $5,000,000
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(4) P16-33 (pp. 16-32 and 16-33): CVP with Alternative Products (parts a, b, c, and d only)
(b) Required sales for identical before-tax profit = 5,000 pairs
(d) Product preferred at a volume of 18,000 pairs = Roadrunner
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(5) E16-22 (p. 16-29): Operating Leverage
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(b) Operating leverage factor = 2.98 (rounded) Page 2 of 3
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Fifth Edition:
(1) E15-21 (p. 15-27): Cost Behavior Analysis Using High-Low Method
(c) Total costs = $31,234
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(2) P16-29 (p. 16-32): Contribution Income Statement & Basic CVP (parts a, b, c, and d only)
(b) Monthly breakeven in units = 2,000
(d) Required sales = 3,250
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(3) P16-31 (p. 16-32): CVP Analysis & Special Decisions
(c) Point of indifference between alternatives = $5,454,545
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(4) P16-33 (pp. 16-33 and 16-34): CVP with Alternative Products (parts a, b, c, and d only)
(b) Required sales for identical before-tax profit = 16,000 pairs
(d) Product preferred at a volume of 13,000 pairs = Trail Runner
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(5) E16-22 (p. 16-29): Operating Leverage
(b) Operating leverage factor = 2.27 (rounded) Page 3 of 3
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Fourth Edition:
(1) E14-21 (p. 14-25): Cost Behavior Analysis Using High-Low Method*
(c) Total costs = $30,900
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(2) P15-29 (pp. 15-29 and 15-30): Contribution Income Statement & Basic CVP (parts a, b, c, and d only)
(b) Monthly breakeven in units = 2,000
(d) Required sales = 3,250
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(3) P15-31 (p. 15-30): CVP Analysis & Special Decisions
(c) Point of indifference between alternatives = $5,454,545
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(4) P15-33 (pp. 15-31 and 15-32): CVP with Alternative Products (parts a, b, c, and d only)
(b) Required sales for identical before-tax profit = 16,000 pairs
(d) Product preferred at a volume of 13,000 pairs = Trail Runner
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(5) E15-22 (p. 15-27 and 15-28): Operating Leverage
(b) Operating leverage factor = 1.58