Question
A single product is made by Botaniko, Inc. The company's December 2018 income statement is below. Sales (5,000 units) $150,000 Less variable expenses (75,000) Contribution
A single product is made by Botaniko, Inc. The company's December 2018 income statement is below.
Sales (5,000 units) $150,000 Less variable expenses (75,000) Contribution margin 75,000 Less fixed expenses (30,000) Net income $ 45,000
Required:
a. Contribution margin per unit is $ ________ per unit b. If sales are doubled to $300,000, total variable costs will equal $ ________ c. If sales are doubled to $300,000, total fixed costs will equal $ ________ d. If 20 more units are sold, profits will increase by $ ________ e. Compute how many units must be sold to break even # ________ (Based on the initial data) f. Compute how many units must be sold to achieve profits of $30,000 # ________ (Based on the initial data)
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