Question
A company has a selling price of $20 a unit, variable costs of $10 a unit, and fixed costs of $40,000. A.What is the breakeven
A company has a selling price of $20 a unit, variable costs of $10 a unit, and fixed costs of $40,000.
A.What is the breakeven point in dollar sales?
B.What quantity must be sold to earn a profit of $60,000?
C.What is the Firms total contribution margin at breakeven?
D.How much revenue is needed to make an aftertax profit of $120,000? Assume a tax rate of 40%.
E.Assume the company sells 12,000 units and the total contribution margin increases by 10%, holding revenues constant, what is the income for the company?
F.Assume we have been selling 14,000 units. What is the net income if there is a 20% decrease in units sold?
G.By how much can fixed cost increase, if the firm increases its sales price by $4 and wants to make a profit of $40,000 by selling 9,000 units?
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