Please do not give solution in image format thanku Kincaid Company sells flags with team logos. Kincaid has fixed costs of $664,000per year plus variable costs of $13.50 per flag. Each flag sells for $37.50.Requirements1. Use the equation approach to compute the number of flags Kincaid must selleach year to break even.2. Use the contribution margin ratio approach to compute the dollar sales Kincaidneeds to earn $100,800 in operating income for 2014. (Round the contributionmargin to two decimal places.)3. Prepare Kincaid's contribution margin income statement for the year endedDecember 31, 2014, for sales of 225,000 flags. (Round your final answers up tothe next whole number.)

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Kincaid Company sells flags with team…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. Requirements: : Use the equation approach to compute the number of flags Crandall must sell each year to break even. : Use the contribution margin ratio approach to compute the dollar sales CRandall needs to earn $33,000 in operating income for 2018. ( Round the contribution margin ratio to two decimal places.) : Prepare Crandall's contribution margin income statement for the year ended December 31, 2018, for sales of 70,000 flags. ( Round your final answers up to the next whole number). : The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should Crandall undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number).
Analyzing CVP relationships Crandall Company sells flags with team logos. Crandall has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. Requirements Use the equation approach to compute the number of flags Crandall must sell each year to break even. Use the contribution margin ratio approach to compute the dollar sales Crandall needs to earn $33,000 in operating income for 2018. (Round the contribution margin ratio to two decimal places.) Prepare Crandall’s contribution margin income statement for the year ended December 31, 2018, for sales of 70,000 flags. (Round your final answers up to the next whole number.) The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should Crandall undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.)
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