Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For this cost volume profit scenario the variables are Sales Profit= 25 Variable Cost= 15 Fixed Cost= 180 Contribution Margin= 10, Contribution Margin Ratio= 0.4,

For this cost volume profit scenario the variables are

Sales Profit= 25

Variable Cost= 15

Fixed Cost= 180

Contribution Margin= 10, Contribution Margin Ratio= 0.4, Breakeven in units= 18 units,

Breakeven point in dollars= 300

Calculate

1. Target Sales in units for achieving a 50,000 target NI

2. Target Sales in dollars for achieving a 50,000 target NI

3. Calculate what the new sales price should be in order to achieve a $10,000 NI using the breakeven in units for sales volume.

4. Calculate what the variable cost per unit would need to be in order to achieve a 10,000 NI using the breakeven in units for sales volume

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

Auditing Cases An Interactive Learning Approach

Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt

7th Edition

0134421825, 9780134421827

More Books

Students also viewed these Accounting questions

Question

Dont off er e-mail communication if you arent going to respond.

Answered: 1 week ago