Question
Fast Clean Company sells a product used for car cleaning. The company s fixed costs for the month are $40,000. The cost to make each
Fast Clean Company sells a product used for car cleaning. The company s fixed costs for the month are $40,000. The cost to make each product is $30 and it is sold at $68. Last month, the company sold 2,000 products. Answer the following questions. You must include the procedure to support each answer. a) What is the company s break-even point in units? Use the contribution margin approach. b) What is the company s break-even point in sales? Use the contribution margin ratio. c) How many units must the company sell to earn a target net profit of $100,000? Use the contribution margin approach. d) What was the company s net income for the prior month?
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