Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company reports the contribution margin income statement for 2021 below. Using this information, compute 1) break-even point in units, 2) break-even point in sales dollars,
Company reports the contribution margin income statement for 2021 below. Using this information, compute 1) break-even point in units, 2) break-even point in sales dollars, 3) unit sales to achieve target pretax income, and 4) dollar sales to achieve target pretax income. | ||||||
Units | $ per unit | Total | ||||
Sales | 3,100 | $340 | $1,054,000 | |||
Variable costs | 3,100 | 221 | 685,100 | |||
Contribution margin | 368,900 | |||||
Fixed costs | 261,800 | |||||
Pretax income | $107,100 | |||||
1) Compute the break-even point in units | ||||||
2) Compute the break-even point in sales dollars | ||||||
Target pretax income | $178,500 | |||||
Sales (units) to achieve targeted pretax income of $178,500 | ||||||
Sales (dollars) to achieve targeted pretax income of $178,500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started