Question
Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,986,500 $33.00 Total variable cost 1,373,790 15.18 Contribution margin $
Khumbu Company's projected profit for the coming year is as follows:
Total | Per Unit | |||
Sales | $2,986,500 | $33.00 | ||
Total variable cost | 1,373,790 | 15.18 | ||
Contribution margin | $ 1,612,710 | $ 17.82 | ||
Total fixed cost | 1,346,314 | |||
Operating income | $ 266,396 |
Required:
1. Compute the break-even point in units. If required, round your answer to nearest whole value. fill in the blank 1 units
2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. fill in the blank 2 units
3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. fill in the blank 3 %
Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. $fill in the blank 4
4. For the projected level of sales, compute the margin of safety in units. fill in the blank 5 units
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