Use the following information to work the problems and use a book Cost Accounting. Each problem stands alone.
Bernard Windows is a small company that installs windows. Its cost structure is as follows:
Selling price for each window installation $500
Variable cost of each window installation $400
Annual fixed costs $150,000
#1. This is also TRY IT 3-2 on page 75.
Calculate (a) the breakeven point in units and revenue and (b) the number of windows Bernard Windows must install and the revenues needed to earn a target operating income of $100,000.
#2. TRY IT 3-3 on page 77.
Same information as above but now tax rate is 30%. Calculate the number of windows Bernard Windows must install and the revenues needed to earn a target net income of $63,000.
#3. TRY IT 3-4 on page 82. Calculate the margin of safety in units and dollars and the margin of safety percentage if the company expects to sell 2,400 windows in the year.
#4. TRY IT 3-5 on page 84. Number of units sold is 2500.
Bernard is considering changing its sales compensation for next year. Bernard would pay salespeople a 5% commission next year and reduce fixed costs by $62,500. Calculate the degree of operating leverage at sales of 2,500 units under the two options. Comment briefly on the result.
#5. TEY IT 3-6 on page 87.
Bernard Windows plans to sell two different brands of windows-- Chad and Musk--- and budgets the following:
                                                      Chad                   Musk                         Total
Expected sales                               2500                   1000                         3500
Revenues (500 and 350 per unit) $1,250,000       $350,000                $1,600,000
Variable cost ( 400 and 275 per unit) $1,000,000    $275,000                $1,275,000
Contribution margin (100 and 75 )    250,000          $75,000                $325,000
Fixed costs $195,000
Operating income $130,000
Calculate the break even point for Bernard Windows in terms of the (a) number of units sold and (b) revenues.

Use the following information to work the problems and use a book C...