Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lamar has the following information Selling Price $40 Variable manufacturing cost $22 Fixed manufacturing cost $150,000 per month Variable selling & administrative costs $6 Fixed

Lamar has the following information

Selling Price $40

Variable manufacturing cost $22

Fixed manufacturing cost $150,000 per month

Variable selling & administrative costs $6

Fixed selling & administrative costs $120,000 per month

__________________________1. What is the expected operating profit for the upcoming year for 30,000 units forecasted?

___________________________ 2. What is the break-even point in dollars?

___________________________ 3. What is the number in units in which profits are equal to zero?

___________________________ 4. what is the contribution margin per unit?

___________________________ 5. what is the contribution margin in dollars?

___________________________ 6. How much in sales dollars is required to generate an operating profit of $30,000?

___________________________7. what is the contribution margin ratio?

___________________________ 8. How much in units is required to generate an operating profit of $24,000 after tax ( tax rate 20%)

___________________________ 9. if the forecast is 35,000 units, what is the margin of safety in units ?

___________________________10. what is the operating leverage? It is high or low?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Process Driven Comprehensive Auditing A New Way To Conduct ISO 9001 2000 Internal Audits

Authors: Paul C. Palmes

1st Edition

0873896416, 978-0873896412

More Books

Students also viewed these Accounting questions