Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help asap please. Write out each answer please. Question. Currently the unit selling price of a product is $200, the unit variable cost is $110,
Help asap please. Write out each answer please.
Question. Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total fixed costs are $$85,000. A proposal is being evaluated to increase the unit selling price to $275. Under the proposed plan, the variable cost per unit and the total fixed cost will not change. Current Scenario [7 Points]: 1) Calculate the contribution margin per unit. 2) Calculate the contribution margin ratio. 3) Calculate the breakeven point in units under the current scenario. 4) Calculate the breakeven point in dollars under the current scenario, 5) Calculate the number of units to be sold if the company desires a target profit of $225,000. 6) Calculate the sales dollars if the company desires a target profit of $225,000. Proposed Plan [7 Points]: 1) Calculate the contribution margin per unit. 2) Calculate the contribution margin ratio. 3) Calculate the breakeven point in units under the current scenario. 4) Calculate the breakeven point in dollars under the current scenario, 5) Calculate the number of units to be sold if the company desires a target profit of $225,000. 6) Calculate the sales dollars if the company desires a target profit of $225,000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started