Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need answers 1 through 4 eBook Calculator Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as

image text in transcribed

need answers 1 through 4

eBook Calculator Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit $29.00 Sales Total variable cost Contribution margin $2,356,250 706,875 8.70 $1,649,375 $ 20.3 Total fixed cost 777,563 Operating income $ 871,812 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160.000 more than expected 4. For the projected level of sales, compute the margin of safety in units. units Check dy Work Previous Next

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

Montgomerys Auditing Classic Reprint Series

Authors: Robert Hiester Montgomery

1st Edition

1390439356, 978-1390439359

More Books

Students also viewed these Accounting questions

Question

What do you need to know about motivation to solve these problems?

Answered: 1 week ago

Question

define what is meant by the term human resource management

Answered: 1 week ago