You have worked out the following facts about three of your businesss products: A B Expected number
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You have worked out the following facts about three of your business’s products:
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A B Expected number of unit sales 1 400 5 000 6 600 Sales price per unit $ 200 $ 50 $ 160 Variable cost per unit $ 80 $ 10 $ 120 Total fixed costs $96 000 $120 000 $160 000 Target (desired) profit $78 000 $ 75 000 $100 000 Required: Calculate: Contribution margin per unit Contribution margin ratio (%) Breakeven point in units Breakeven point in sales dollars Unit sales needed to achieve target profit Profit at expected sales level Will the product achieve/exceed the target profit with expected sales?
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Accounting Information For Business Decisions Accounting
ISBN: 9780170446242
4th Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh
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