Question
a company has a $400,000 of fixed selling cost. $100,000 of fixed administrative costs and 300000. of fixed overhead. Their direct material costs are $20/unit.
a company has a $400,000 of fixed selling cost. $100,000 of fixed administrative costs and 300000. of fixed overhead. Their direct material costs are $20/unit. Labor costs are $10/hour and it takes 30 minutes to make on unit of product. Their selling commisssion are 10% of the selling price. the selling price is $80/ unit. 1-what is the dollar amount of total fixed costs? 2-What are the total variable costs PER UNIT? 3- Whats the contribution margin per unit? 4-Whats the contribution margin as a %? 5- whats the breakeven point in units? round 6-whats the amount of DOLLAR sales need to have a $50,000 before tax net income? round nearest dollar 7-Assume that ANOTHER company with different costs had a sales of $400,000; and operating NI of $30,000; and total variable costs of $300,000. Fixed costs = $70,000 . whats the operating leverage?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started