Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flower Company sells a product with a contribution margin ratio of 30%. Fixed costs are $1,143 per month. What amount of sales (in dollars) must

image text in transcribed
Flower Company sells a product with a contribution margin ratio of 30%. Fixed costs are $1,143 per month. What amount of sales (in dollars) must Flower Company have to break even? If each unit sells for $30, how many units must be sold to break even? Begin by showing the formula and then entering the amounts to calculate the sales in dollars Flower must have to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. Enter a "O" for items with a zero value.) ( Fixed costs + Target prot )+ CM ratio = Required sales in dollars ( $ 1,143 + $ 0 )+ 30 % = $ 3,810 Now show the formula and enter the amounts to calculate the units Flower must sell to break even. (Abbreviation used: CM = contribution margin. Round your answer to the nearest whole unit.) V V Required sales + Sales price per unit = Required sales in units

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

Hospitals What They Are And How They Work

Authors: Don Griffin, Donald J Griffin

3rd Edition

076372758X, 9780763727581

More Books

Students also viewed these Accounting questions

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago

Question

8. What values do you want others to associate you with?

Answered: 1 week ago