Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schiylar Pharmaceuticals, Inc. plans to sell 140,000 units of antibiotic at an average price

image text in transcribed
image text in transcribed
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schiylar Pharmaceuticals, Inc. plans to sell 140,000 units of antibiotic at an average price of $17 each in the coming year. Total variable costs equal $761,600 Total fixed costs equal $3,600,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent What is the contribution margin ratio? Round your antiwer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar 3. Calculate the sales revence needed to achieve a tarot profit of $275,000. Round your answer to the nearest dollar, 4. What if the average price per unit increased to $18.50? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-6) above for the contribution margin ratio, and round your final answer to the nearest dollar 4. Sales revenue needed to achieve a target profit of $275,000. In your computations, use your rounded answer from part (4-6) above for the contribution margin ratio, and round your final answer to the nearest dollar

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

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions