Question
A company has a selling price of $16 a unit, variable costs of $8 a unit, and fixed costs of $30,000. A) 5%- What is
A company has a selling price of $16 a unit, variable costs of $8 a unit, and fixed costs of
$30,000.
A) 5%- What is the breakeven point in dollar sales?
B) 4%- What quantity must be sold to earn 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 20% 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?
F) 4%- By how much can fixed cost increase, if the firm increases its sales price by $4 and wants to make
an operating income of $40000 by selling 9,000 units?
G) 4%- Assume we have been selling 10,000 units. What is the operating income if there is a 10% decrease
in units sold?
H)5% - How many units need to be sold to make an after tax profit of $90,000? Assume a tax rate of 40%.
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