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Hermione Corporation forecasts that next year it can sell 36,000 units of its family-sized ready-to-eat meals for $1,080,000. The expected contribution margin ratio is 55%.
Hermione Corporation forecasts that next year it can sell 36,000 units of its family-sized ready-to-eat meals for $1,080,000. The expected contribution margin ratio is 55%. Fixed costs are estimated to be $414,000.
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 28,000 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 37,000 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 $94,000.
Round your answer to the nearest whole number.
Revenue: $Answer
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