3.2 Marlin Motors sells a single product with a selling price of $400 with variable costs per...
Question:
3.2 Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160.
The company’s monthly fixed expenses are $36,000.
A. What is the company’s break-even point in units?
B. What is the company’s break-even point in dollars?
C. Prepare a contribution margin income statement for the month of November when they will sell 130 units.
D. How many units will Marlin need to sell in order to realize a target profit of $48,000?
E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,000?
F. Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
Step by Step Answer:
Principles Of Accounting Managerial Accounting Volume 2
ISBN: 9781947172609
1st Edition
Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper