Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Electrical costs at Claude's Custom Factory are listed below: Machine Hours Electrical Cost $183,816 January 36,420 February 36,160 $182,376 March 24,670 $128,955 April 29,120 $150,188
Electrical costs at Claude's Custom Factory are listed below: Machine Hours Electrical Cost $183,816 January 36,420 February 36,160 $182,376 March 24,670 $128,955 April 29,120 $150,188 May 35,480 $178,452 June 36,650 $175,955 July 36,440 $179,168 August 37,450 $190,960 September 25,470 $134,556 October 28,980 $151,100 November 36,130 $188,555 December 37,920 $188,580 In 2019, Chelsea Vines Co. had a net loss of $100,000 when the selling price per unit was $10 per unit, the variable costs per unit were $6, and the fixed costs were $200,000. Management expects per unit data and total fixed costs to be the same in 2020. Management has set a goal of earning net income of $80,000 in 2020. Instructions: Answer each of the following questions. Round each dollar amount to the nearest cents. Round each percentage to the nearest 100" or two decimal places. Round up on the number of units. 1. What is the contribution margin per unit? 2. What is the contribution margin percentage? 3. What is the breakeven in sales dollars? 4. How many units were sold in 2019 when there was a net loss of $100,000? 5. How many units will be sold in 2020 if there will be a profit of $125,000? 6. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety? 7. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety percentage
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