Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Centennial Company makes electronics. Its sales for 2020 are $1,378,000. Fixed costs are $420,918 and variable costs are $799,240. It sold 2,600 units in the

Centennial Company makes electronics. Its sales for 2020 are $1,378,000. Fixed costs are $420,918 and variable costs are $799,240. It sold 2,600 units in the year.

Calculate the contribution margin per unit and the contribution margin ratio. (Round contribution margin per unit to 2 decimal places, e.g. 15.20 and contribution margin ratio to 4 decimal places, e.g. 1.4254%.)
Contribution margin $

per unit
Contribution margin ratio

%
Assuming a consistent contribution margin ratio, if its desired operating income is $120,000, what would the company need to sell in units and in dollars to achieve this goal? (Round answers to 0 decimal places, e.g. 125.)
In dollars In units
Required sales $

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_2

Step: 3

blur-text-image_3

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions

Question

= VLOOKUP ( $M$ 6 , $A$ 6 :$J$ 1 3 , 2 , FALSE )

Answered: 1 week ago