Question
1. Kratzen Company sells a product at $60 per unit that has unit variable costs of $40. The company's break-even sales volume is $150,000. How
1. Kratzen Company sells a product at $60 per unit that has unit variable costs of $40. The company's break-even sales volume is $150,000. How much profit will the company make if it sells 4,000 units?
$53,000
$30,000
$24,000
$65,000
2.
Agassi Corporation sells products for $39 each that have variable costs of $16 per unit. Agassis annual fixed cost is $512,900 |
Use the per-unit contribution margin approach to determine the break-even point in units and dollars. |
3.
Lindo Company incurs annual fixed costs of $43,340. Variable costs for Lindos product are $28.98 per unit, and the sales price is $42.00 per unit. Lindo desires to earn an annual profit of $54,000 |
Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your answer to the nearest whole number.) |
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