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Sales

Net Income

Orange Company
2009
% of Sales
2010
$20,000,000
$27,000,000
$1,000,000
$2,000,000

Current Assets
Net Fixed Assets
Total Assets

$4,000,000
$8,000,000
$12,000,000

20%
40%

$5,400,000
$10,800,000
$16,200,000

Liabilities & Owners' Equity


Accounts Payable
Long-term Debt
Total Liabilities

$3,000,000
$2,000,000
$5,000,000

15%

$4,050,000
$2,000,000
$6,050,000

Common Stock
Paid-in Capital
Retained Earnings
Common Equity
Total Liabilities & Equity

$1,000,000
$1,800,000
$4,200,000
$7,000,000
$12,000,000

$1,000,000
$1,800,000
$6,200,000
$9,000,000
$15,050,000
DFN

2)
Orange Company
Selling Price
Variable Cost per Unit
Unit Contribution Margin
Fixed Costs

$175
$140
$35
$550,000

Break-even Point in Units


Break-even Point in Sales Dollar

15,714.29
$2,750,125

Number of Units
Sales
Less: Variable Costs
Contribution Margin
Less: Fixed Costs
Net Profit (Loss)

12,000
$2,100,000
$1,680,000
$420,000
$550,000
($130,000)

$1,150,000

15,715

15,000
$2,625,000
$2,100,000
$525,000
$550,000
($25,000)

20,000
$3,500,000
$2,800,000
$700,000
$550,000
$150,000

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