Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,346,000 $46.00

Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,346,000 $46.00 Total variable cost 844,560 16.56 Contribution margin $ 1,501,440 $ 29.44 Total fixed cost 768,550 Operating income $ 732,890 Required:

1. Compute the break-even point in units. If required, round your answer to nearest whole value. units

2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units

3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. $

4. For the projected level of sales, compute the margin of safety in units. 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

Auditing The Modern Hospital

Authors: B. J Hall

1st Edition

0130516724, 978-0130516725

More Books

Students also viewed these Accounting questions

Question

6. What is a random sample? (LO 15-3)

Answered: 1 week ago