Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Auditing Measuring Inputs, Outputs, And Outcomes

Authors: Stephen L. Morgan, Ronell B. Raaum, Colleen G. Waring

3rd Edition

0894139762, 9780894139765

More Books

Students also viewed these Accounting questions