3.2 Marlin Motors sells a single product with a selling price of $400 with variable costs per...

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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.

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Principles Of Accounting Managerial Accounting Volume 2

ISBN: 9781947172609

1st Edition

Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper

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