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

___________________________ 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%)

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

Accounting

Authors: Warren S. Carl

23rd Edition

0324555865, 978-0324555868

More Books

Students also viewed these Accounting questions

Question

3. How has Starbucks changed since its early days?

Answered: 1 week ago