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Cost Problem Profit: Use the test paper and the back if need to show a e test paper and the back If need to show
Cost Problem Profit: Use the test paper and the back if need to show a e test paper and the back If need to show all work done to arrive at the answer. 28. PPD manufactures a product that sells for $40 per unit. $1,400,000 in total fixed costs to produce this roduct it is currently selling 92,000 units that sells for $40 per unit. PPD incurs a variable cost per unit of $24 and Instructions: Complete each of the following requirements, presenting lan computations. ne following requirements, presenting labeled supporting (a) Compute and label the contribution margin per unit and contribution mars (6) Using the contribution margin per unit, compute the break-even point in units. (C) Using the contribution margin ratio, compute the break-even point in dollars. (d) Compute the margin of safety and margin of safety ratio. (e) Compute the number of units that must be sold in order to generate net income of $240,000 using the contribution margin per unit. (f) Should Walton Widgets give a commission to its salesmen based on 8% of sales, if it will decrease fixed costs by $300,000 and increase sales volume 10%? Support your answer with labeled computations
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