Jack company operating at full capacity. Sold 38,000 units at a price of $20 per unit during 2014.

Jack company operating at full capacity. Sold 38,000 units at a price of $20 per unit during 2014. It’s full cost income statements for 2014 is as follows.

Sales $ 760,000
Cost of Goods Sold 
variable cost of goods sold 80,000
Fixed cost of goods sold 120,000
Gross profit 560,000
Operating Expenses
Selling Expenses 
variable Selling expenses 30,000
Fixed Selling expenses 70,000
Administrative Expenses 
variable Administrative expenses 14,000
Fixed Administrative expenses 6,000
Total Operating Expenses 120,000
Operating profit $440,000

Instructions:

Determine for 2014 Use 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 Even
7- 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 units
3- Contribution margin 
4- Contribution margin ratio

Hint BE unit= Fixed cost/ CM
CM= sales- (variable cost of goods sold + variable expenses)
BE dollar = Fixed cost /CM ratio 
CM ratio= CM/ sales
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