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Innovation Arch Company has the following financial information: (Note: K represents thousands, e.g., $100 K = $100, 000 ) Total unit sales volume
Innovation Arch Company has the following financial information: (Note: "K" represents thousands, e.g., $100K = $100,000) | |||
Total unit sales volume | $250K | ||
Price per unit | $8 | ||
Total revenues | $2 Million | ||
Total fixed expense | $800K | ||
Total variable expense | $750K | ||
Net profit before tax | $450K | ||
Given the following, calculate the following for Innovation Arch Company: (Note: "K" represents thousands, e.g., $100K = $100,000) | |||
1. Total Contribution | |||
2. Contribution Margin | |||
3. Breakeven revenues (in dollars) | |||
4. If Innovation Arch Company reduces its prices by ten percent (10%), what unit sales volume will be needed for them to yield net profit of $200K (before tax)? |
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