Question
me Corp has fixed has fixed overhead of $500,000 for its plant and salaries of $300,000. It sells high quality industrial values for $110 each,
me Corp has fixed has fixed overhead of $500,000 for its plant and salaries of $300,000. It sells high quality industrial values for $110 each, which is $10 more than its competitors. Variable productions costs are $50 and shipping costs are $10 per unit. Last year Acme sold 25,000 units. This year Acme sold 30,000 units. Total industry unit sales this year were 100,000.
1. What is Acmes profit? 2. What Acmes unit margin ($) 3. What is Acmes unit margin (%)? 4. What is Acmes return on sales? 5. What is Acmes year-on-year growth(%)? 6. What is Acmes price premium? 7. What is Acmes unit market share? 8. What is Acmes dollar market share? 9. What is Acmes breakeven unit volume? 10. Acme believes it will have a contribution margin of 50% next year and wants to earn a profit of $1,000,000. What will its target revenue be if it can keep its fixed costs at existing levels ?
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