11. The budgets of four companies yield the following information:

(Click the icon to view the budget information for the four companies.) Requirements

1. Fill in the blanks for each company

2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? son Requirement 1. Fill in the blanks for each company (Round the contribution margin per unit and ratio calculations to two decimal places.)

	Q	R	S	T
Target sales	$ 687,500	$ 480,000	$ 146,250
Variable expenses	192,500			198,000
Fixed expenses		165,000	82,000
Operating income (loss)	$ 90,000			$ 133,000
Units sold		110,000	13,000	16,500
Contribution margin per unit	$ 6.60		$ 9.00	$ 38.00
Contribution margin ratio		0.55

Requirement 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Begin by determining the formula, then compute the break even sales for each company one at a time. (Complete all answer boxes. For amounts with a So balance, make sure to enter “0” in the appropriate cell.)

      (         (1)         +        (2)             ) /           (3)               =                Breakeven sales

Q   (                       +                          ) /                                =

R   (                       +                          ) /                                =

S    (                       +                         ) /                                 =

T    (                       +                        ) /                                  =

Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

(4) ______ has the lowest breakeven point primarily due to (5) ________

1: Data Table

Commpany
	Q	R	S	T
Target sales	$ 687,500	$ 480,000	$ 146,250	$
Variable expenses	192,500			198,000
Fixed expenses		165,000	82,000
Operating Income (loss)	$ 90,000	S	$	$ 133,000
Units sold		110,000	13,000	16,500
Contribution margin per unit	$ 6.60	S	$ 9.00	$ 38.00
Contribution margin ratio		0.55

(1) A. Variable expenses

      B. Fixed expenses

      C. Target sales

      D. Total expenses

(2) A. Contribution margin

      B. Operating income

      C. Variable expenses

(3) A. Contribution margin per unit

      B. Contribution margin ratio

      C. Units sold

(4) A. Q Company

      B. R Company

      C. S Company

      D. T Company

(5) A. Its high fixed costs

      B. Its low fixed costs

      C. Its high sales price