Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please give step by step guidelines on how you go to your answer. Thank you! Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target

Please give step by step guidelines on how you go to your answer. Thank you! image text in transcribed
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc.. plans to sell 130.000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $1,086.800. Total fixed costs equal $8,000,000. (Round ratios to four significant figures and dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio 2. Calculate the sales revenue needed to break even 3. Calculate the sales revenue needed to achieve a target profit of $245,000. 4. What if the average price per unit increased to $23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to 4 decimal places) c. Sales Revenue needed to break even d. Sales Revenue needed to achieve a target profit of $245,000

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

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arena

6th Edition

ISBN: 0912503564, 9780912503561

More Books

Students also viewed these Accounting questions