Question
Hermione Corporation forecasts that next year it can sell 25,000 units of its family-sized ready-to-eat meals for $1,100,000. The expected contribution margin ratio is 60%.
Hermione Corporation forecasts that next year it can sell 25,000 units of its family-sized ready-to-eat meals for $1,100,000. The expected contribution margin ratio is 60%. Fixed costs are estimated to be $481,000.
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 32,000 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 profit if 42,000 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 profit of $96,000. Round your answer to the nearest whole number. Revenue: $Answer
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