Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company sells a product for $850 each, variable cost per unit is $350, and total fixed cost are $425,000. Based on the provided information,

image text in transcribed
A company sells a product for $850 each, variable cost per unit is $350, and total fixed cost are $425,000. Based on the provided information, answer the following: 1. What is the contribution margin in per unit? \$ 2. Compute break even in units. units 3. Calculate sales in units and dollars in order to earn pretax income of $350,000. 1. Sales in Units: units 2. Sales in dollars: $ 4. Compute break even in units, if variable cost per unit is reduced to $220 and fixed cost increase to $595,350. 1. New Break even is: units

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

Forensics Audits And Dreaming

Authors: Helgard Petrus - Coetser

1st Edition

1664260250, 978-1664260252

More Books

Students also viewed these Accounting questions

Question

What are the stages of project management? Write it in items.

Answered: 1 week ago