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1. 35% - A company has a selling price of $18 a unit, variable costs of $10 a unit, and fixed costs of $40,000 A)
1. 35% - A company has a selling price of $18 a unit, variable costs of $10 a unit, and fixed costs of $40,000 A) 5% - What is the breakeven point in dollar sales? B) 4% - What quantity must be sold to eam an operating income of $40,000 ? C) 4% - What is the Firm's contribution margin per unit and contribution margin percentage? D) 4% What is the breakeven in units if there is a 10% increase in fixed costs E) 5% - Assume the company sells 10,000 units and the total contribution margin increases by 20%, what is the operating income for the company(fixed costs are $40,000 ) F) 4% - By how much can fixed cost increase, if the firm increases its sales price by $6 and wants to make an operating income of $50,000 by selling 10,000 units? For parts G and H use the information at the beginning of the problem G) 4% - Assume we have been selling 10,000 units. What is the operating income if there is a 20% decrease in units sold? H)5\% - How many units need to be sold to make an after tax profit of $100,000 ? Assume a tax rate of 20%
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