Project 1: CVP Income Statement (10 points) to Moodle by Instructions: Prepare your solutions in Excel, and upload your Excel file to Moodle the deadline specified by your instructor. Do NOT email your file! The following information pertains to Fun in the Sun, Inc., a jet ski manufacturer: $ 575 280 Budgeted production costs for the coming year: Direct materials per ski Direct labor per ski Variable overhead per ski Total fixed overhead 70 44,750 Budgeted selling and administrative costs for the coming year: Fixed selling & admin expense $ 102,000 Sales commission per ski 75 In the coming year, Fun in the Sun plans to produce and sell 1,200 skis at a price of $1,250 each. Instructions for Project 1: 1. Prepare a CVP income statement. 2. Calculate the breakeven point in units and sales dollars, 3. Calculate the margin of safety. 4. Calculate the margin of safety ratio. 5. If Fun in the Sun wants to earn net income of $250,000, how many units it sell?
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