Question
Please Answer question a, b & c please , not in excel Question 1 A company produces a single product called the Fidget. The following
Please Answer question a, b & c please , not in excel
Question 1
A company produces a single product called the Fidget. The following information relating to the next year has been provided:
$
Sales 1,200,000
Less Variable expenses 840,000
Contribution margin 360,000
Less Fixed expenses 300,000
Net operating income 60,000
The company plans to sell 15,000 next year
Required:
a. Calculate the contribution margin per unit and the contribution margin ratio
b. Compute the breakeven point in units and dollar value
c. Compute the number of units to be sold in order to earn a profit of $36,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started