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Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less
Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses Net income Required: $120,000 (68,000) 52,000 (40,000) $12,000 a. Contribution margin per unit is $ per unit b. If sales are doubled to $240,000, total variable costs will equal $ c. If sales are doubled to $240,000, total fixed costs will equal d. If 10 more units are sold, profits will increase by $ e. Compute how many units must be sold to break even. # f. Compute how many units must be sold to achieve profits of $20,000. #
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