Transcript Chapter 20 - Accounting

Cost-VolumeProfit Analysis
Chapter 20
Exercises
High-Low Method

In-Class Exercise (Form groups and work exercise):
Exercise No.
HO 20-1
Page
Handout
High-Low Method
(Use the format, as reflected on the next slide, to
begin the exercise)
High-Low Method
Exercise
HO 20-1
Page
Handout
High-Low Method
High-Low Method
High-Low Method
High-Low Method
500
High-Low Method
High-Low Method
End of Exercise
Break-Even Analysis

In-Class Exercise (Form groups and work exercise):
Exercise No.
E20-25
Page
1251
Break-even Analysis
Break-Even Analysis
Analysis
Break-Even
Exercise E20-25:
Trendy Toes Co. produces sports socks that sell for $1.90 per package with
a total variable cost of $0.95 per unit. The company’s annual fixed costs
are $95,000.
Requirements:
(a)
(b)
(c)
(d)
Compute the contribution margin per package
Compute the contribution ratio per package
Compute the break-even point in units
Compute the break-even point in dollars of sales
Break-Even Analysis
Exercise E20-25 (Part 1)
Break-Even Analysis
Exercise E20-25 (Part 1)
Break-Even Analysis
Exercise E20-25 (Part 2)
Break-Even Analysis
Exercise E20-25 (Part 2)
Break-Even Analysis
End of Exercise
Composite Units

In-Class Exercise (Form groups and work exercise):
Exercise No.
E20-32
Page
1254
Break-even Point for
Composite Units
(Use the format, as reflected on the next slide, to
begin the exercise)
Composite Units
Exercise
E20-32
Page
1254
Composite Units
Composite
Units
Composite Units
Exercise E20-32:
Speedy’s Scooters plans acquire and sell two type of scooters
(standard and chrome). Speedy expects to sell one standard
scooter for every three chrome scooters (ratio of 1:3). The
following additional information is provided.
Standard
Selling price………………. $ 55
Variable cost……………… $ 30
Chrome
$ 70
$ 40
Monthly fixed costs are $23,000.
Requirements:
(1) How many of each type of scooter must Speedy’s Scooters
sell each month to break even?
(2) How many of each type of scooter must Speedy’s Scooters
sell each month to earn $25,300?
Composite Units
Composite Units
Composite Units
Composite Units
End of Exercise