Question
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed expense is $400,000 and the company's monthly target profit
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed expense is $400,000 and the company's monthly target profit is $100,000. The dollar sales required to attain the target profit are:
A. | $2,500,000 | |
B. | $1,500,000 | |
C. | $625,000 | |
D. | $2,000,000 |
Sales above the break-even point will result in net profit equal to _______.
A. | number of units above break-even times fixed cost per unit | |
B. | number of units above break-even times contribution margin per unit | |
C. | number of units above break-even times sales price per unit | |
D. | number of units above break-even times variable cost per unit |
Answer the questions based on the graph shown below: S350,000 300,000 S250,000 5200,000 150,000 100,000 $50,000 So 100 200 300 400 500 600 Volume in units sold ---_-.) represents [B] The dotted line..) represents [C] The solid line( [D] The approximate numbers of units at the break-even point is E In a sentence or two, describe the variable expense line. If applicable, include its relation to the other lines shown on the graph. ) represents
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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