Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 (CVP Analysis & Incremental Analysis) Part A 25 MARKS 10 Marks Milles Fleurs is undergoing an analysis of one of the products it produces,

image text in transcribed 3 (CVP Analysis & Incremental Analysis) Part A 25 MARKS 10 Marks Milles Fleurs is undergoing an analysis of one of the products it produces, the Ambard Plus. Each Ambard Plus is sold for $40. The variable cost per unit is $12, and the company's monthly fixed cost is $23,000. Required: a. Compute the product's contribution margin per unit and contribution margin ratio. (2 Marks) b. Compute the breakeven point in units (rounded to nearest whole number) (2 Marks) c. If the company wants to earn a target income of $61,000 on this product, compute the level of sale dollars required. (3 Marks) d. If the company achieves this level of sales (from part c), compute its margin of safety in dollars with respect to the Ambard Plus

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

Survey of Accounting

Authors: Carl S. Warren

8th edition

1305961889, 978-1337517386, 1337517380, 978-1305961883

More Books

Students also viewed these Accounting questions

Question

explain how risk-adjusted discount rates are calculated; LO1

Answered: 1 week ago