Assignment:
HardWood, Inc., produces and sells the finest quality pool tables in all of Madison County, Iowa. The company expects the following sales and expense in 2009 for its tables:
Sales (1,000 tables @ $500 per table) $ 500,000
Variable expenses 200,000
Fixed expenses 60,000
A. What is the contribution margin (CM)?
B. How many tables must be sold in order for Hardwood, Inc., to break even?
C. What dollar amount of sales of tables is necessary to break even?
D. Using the slope-intercept formula: Y = mx +b, where Y= Calculated cost, m = variable expense per unit, x = number of tables (units) sold, and b = y-intercept (which is the fixed expense of $60,000), graph the break-even point using MS Excel (show only sales line and expenses line. The break-even point where the total expenses line crosses the sales line ).
Provide complete and step by step solution for the question and show calculations and use formulas.