The budgets of four companies yield the following information:
Company Q R S T
Target sales $680,000 $331,250 $171,875 $ _______
Variable expenses. 170,000 ________ _________ 645,000
Fixed expenses. __________ 156,000 88,000 _________
Operating income (loss). $150,000 $__________ $ _________ $151,000
Units sold _________ 125,000 11,000 15,000
Contribution margin per unit. $6.25 $________ $10.00 $43.00
Contribution margin ratio _________ 0.80 _________ __________
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 low breakeven-point?