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Help with requirement 3 please :) Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to
Help with requirement 3 please :)
Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. Sales price per unit Variable cost per unit Contribution margin per unit The contribution margin per package is $ 0.95 Compute the contribution margin ratio. (Enter the ratio as a whole percent.) Begin by identifying the formula to compute the contribution margin ratio. Contribution margin per unit Sales price per unit Contribution margin ratio 50 % The contribution margin ratio is Requirement 2. Find the breakeven point in units and dollars. Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Fixed expenses Operating income ) + Contribution margin per unit = Breakeven sales in units The breakeven point in units is 100,000 Find the breakeven point in dollars using the contribution margin approach. Begin by identifying the formula to compute the breakeven point in dollars. Fixed expenses Operating income )+ Contribution margin ratio Breakeven sales in dollars The breakeven point in dollars is $ 190,000 Requirement 3. Find the number of packages Big Foot needs to sell to earn a $28,500 operating income. The number of packages to achieve an operating income of $28,500 is Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. Sales price per unit Variable cost per unit Contribution margin per unit The contribution margin per package is $ 0.95 Compute the contribution margin ratio. (Enter the ratio as a whole percent.) Begin by identifying the formula to compute the contribution margin ratio. Contribution margin per unit Sales price per unit Contribution margin ratio 50 % The contribution margin ratio is Requirement 2. Find the breakeven point in units and dollars. Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. Fixed expenses Operating income ) + Contribution margin per unit = Breakeven sales in units The breakeven point in units is 100,000 Find the breakeven point in dollars using the contribution margin approach. Begin by identifying the formula to compute the breakeven point in dollars. Fixed expenses Operating income )+ Contribution margin ratio Breakeven sales in dollars The breakeven point in dollars is $ 190,000 Requirement 3. Find the number of packages Big Foot needs to sell to earn a $28,500 operating income. The number of packages to achieve an operating income of $28,500 isStep by Step Solution
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