Question
Bright Corporation manufactures and sells searchlights. Each searchlight sells for $725. The variable cost per unit is $580, and the company's total fixed costs are
Bright Corporation manufactures and sells searchlights. Each searchlight sells for $725. The variable cost per unit is $580, and the company's total fixed costs are $870,000.
Requirement 1:
Calculate the company'scontribution margin per unitand thecontribution margin ratio.
$and%
Requirement 2:
Calculate thesales in unitsneeded for the company to break even.
Requirement 3:
Calculate thesales in unitsneeded for the company to achieve a target net operating income of $72,500.
Requirement 4:
Calculate thesales in unitsthat would be needed for the company to break even if variable costs increased by $58 per unit.
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