Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Corporation has fixed expenses of $230,000. Each product they sell sells for $17. (10 marks) a) Assuming variable costs are $12 use the income

ABC Corporation has fixed expenses of $230,000. Each product they sell sells for $17. (10 marks)
a) Assuming variable costs are $12 use the income statement equation approach to find the break-even sales in units.
b) Assuming variable costs are $14 use the contribution margin shortcut approach to find the # of units ABC Corporation needs to sell to obtain an operating profit of $75,000.
c) Assuming a contribution margin % of 37.5% compute ABC Corporations operating profit if they sell 32,500 units.
d) Assuming a contribution margin of 55% use contribution margin ratio shortcut to calculate the break-even point in dollars.
e) Assuming they ABC corporation has a margin of safety of $250,000 with 35,000 units sold, what are variable costs per unit?

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

Accounting And Financial System Reform In A Transition Economy A Case Study Of Russia

Authors: Robert W. McGee, Galina G. Preobragenskaya

4th Edition

0387238476, 9780387238470

More Books

Students also viewed these Accounting questions

Question

Are the terms child molester and pedophile the same?

Answered: 1 week ago

Question

=+b) What were the treatments?

Answered: 1 week ago

Question

Develop a program for effectively managing diversity. page 317

Answered: 1 week ago