jack company operating at full capacity. Sold 38,000 units at a price of $20 per unit during 2014. Itâs full cost income statements for 2014 is as follows.Sales $ 760,000Cost of Goods Soldvariable cost of goods sold 80,000Fixed cost of goods sold 120,000Gross profit 560,000Operating ExpensesSelling Expensesvariable Selling expenses 30,000Fixed Selling expenses 70,000Administrative Expensesvariable Administrative expenses 14,000Fixed Administrative expenses 6,000Total Operating Expenses 120,000Operating profit $440,000Instructions:Determine for 2014Use variable Income Statements table (differentiate between Variable and expenses)1- Calculate the break even Table ( assuming that the relative range was between 5000-50,000 units of production , increments by 5,000 units)2- Break-even chart (line)3- Prepare the variable cost (Contribution Margin (CM)) statement.4- Create a table like we created.5- Create Cost volume profit analysis table. (assume sales price range between 20-60)6- You have to support your calculation with chart for Break Even7- Extra credit calculation ( if you solve 1-4, every student will have 10 points more; You have to create a range(s).1- Break-even costs (dollar)2- Break -even units3- Contribution margin4- Contribution margin ratio
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