Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem #1: Sales (units) 20,000 Sales price per unit 12.00$ Variable cost per unit 9.00$ Total Fixed cost 25,000$ Use the above information to calculate:

Problem #1: Sales (units) 20,000 Sales price per unit 12.00$ Variable cost per unit 9.00$ Total Fixed cost 25,000$ Use the above information to calculate: a) Contribution Margin per unit and in total b) Contribution Margin Ratio c) Contribution Margin Income Statement Problem #2: Sales (units) 80,000 Sales price per unit 75.00$ Variable cost per unit 35.00$ Total Fixed cost 1,200,000$ Use the above information to calculate: a) Contribution Margin per unit and in total b) Contribution Margin Ratio c) Contribution Margin Income Statement Problem #3: Sales price per unit 1,200.00$ Variable cost per unit 750.00$ Total Fixed cost 900,000$ Use the above information to calculate: a) Contribution Margin per unit b) Contribution Margin ratio c) Breakeven point in units d) Breakeven point in dollars

Chapter 19 Practice Problem #1 (Continued) Problem #4: A company sells a product for $1,650 per unit. The variable cost is $800 per unit and total fixed costs are $1,020,000. Determine the breakeven point in sales units and the sales units and dollars required to achieve a target profit of $255,000. After using the Target Profit formula to calculate the sales units/dollars, prepare a Contribution Margin Income Statement depicting the Target Profit. Include both units and costs per unit on the statement. Problem #5: A company sells a product for $325 per unit. The variable cost is $125 per unit and total fixed costs are $450,000. Determine the breakeven point in sales units and the sales units and dollars required to achieve a target profit of $1,000,000. After using the Target Profit formula to calculate the sales units/dollars, prepare a Contribution Margin Income Statement depicting the Target Prof

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

Sustainability Performance And Reporting

Authors: Irene M. Herremans

1st Edition

1951527208, 9781951527204

More Books

Students also viewed these Accounting questions