Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Harry Corporation forecasts that next year it can sell 3 2 , 0 0 0 units of its toaster ovens ( for $ 1 ,

Harry Corporation forecasts that next year it can sell 32,000 units of its toaster ovens (for $1,120,000) in the open market. The expected contribution margin ratio is 60%. Fixed costs are estimated to be $477,000.
Do not enter dollar signs or commas in the input boxes.
a) What is the selling price per unit?
Round your answer to 2 decimal places.
Selling Price: $Answer
b) Calculate the contribution margin if 33,000 units are produced and sold.
Round your answer to the nearest whole number.
Contribution Margin: $Answer
c) Calculate the contribution margin per unit.
Round your answer to 2 decimal places.
CM per unit: $Answer
d) If the company decides to sell its products in the open market, determine the amount of units required to break-even.
Round up to the nearest whole unit.
Break-Even Units: Answer
e) Determine the operating income if 40,000 units are produced and sold.
Round your answer to the nearest whole number.
Operating Income: $Answer
f) Determine the amount of revenue that needs to be generated to yield an operating income of $106,000.
Round your answer to the nearest whole number.
Revenue: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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