Question
E4-41B FIND BREAK-EVEN AND TARGET PROFIT VOLUME (Learning Objectives 1 & 2) Happy Ten produces sports socks. The company has fixed expenses of $80,000 and
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E4-41B FIND BREAK-EVEN AND TARGET PROFIT VOLUME (Learning Objectives 1 & 2)
Happy Ten produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $0.90 per package. Each package sells for $1.60.
Requirements
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Compute the contribution margin per package and the contribution margin ratio.
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Find the break-even point in units and in dollars using the contribution margin shortcut approaches.
-
Find the number of packages Happy Ten needs to sell to earn a $22,000 operating income.
Check sum: Contribution margin ratio is 50%.
E4-41B FIND BREAK-EVEN AND TARGET PROFIT VOLUME (Learning Objectives 1 & 2)
Happy Ten produces sports socks. The company has fixed expenses of $80,000 and variable expenses of $0.90 per package. Each package sells for $1.60.
Requirements
-
Compute the contribution margin per package and the contribution margin ratio.
-
Find the break-even point in units and in dollars using the contribution margin shortcut approaches.
-
Find the number of packages Happy Ten needs to sell to earn a $22,000 operating income.
Check sum: Contribution margin ratio is 50%.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
