Cost-Volume-Profit;volume Defined in Sales Dollars

question 113

Essay

Cost-volume-profit;volume defined in sales dollars.An excerpt from the income statement of the Kingston Company follows.Fixed costs in Year 1 are $325,000.
Kingston Company
Income Statement
Year ended December 31,year 1

Required:
a.What percentage of sales revenue is variable cost?
b.What is the break-even point in sales dollars for Kingston Company?
c.If sales revenue falls to $2,900,000,what will be the estimated amount of profit?
d.What amount of sales dollars produces a profit of $1,000,000?
(Kingston Company;cost-volume-profit;volume defined in sales dollars. )

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Definitions:

Armature

The rotating part of an electric machine (motor or generator) within which a current is induced by a magnetic field.

Brushless DC

A type of direct current electric motor (DC motor) that uses an electronic controller to switch the current in the motor, eliminating the need for brushes.

Wound Armature

A component in electrical machines consisting of coils wound around an iron core, which rotates in a magnetic field to induce electromotive force.

Brushes

Sliding contacts, generally made of carbon, used to provide connection to rotating parts of machines.