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Problem 3 (20 points) Assume the following data for Mother Earth LLC: Unit Selling Price Unit Variable Cost Fixed Cost Target Profit $ 230.00 $
Problem 3 (20 points) Assume the following data for Mother Earth LLC: Unit Selling Price Unit Variable Cost Fixed Cost Target Profit $ 230.00 $ 145.00 $ 262,500.00 $ 120,000.00 $ UNITS A) Calculate the unit contribution margin B) How many units must be sold to attain an operating income (Target Profit) of $120,000? Round to the nearest unit. C) How many units must be sold to break-even. Round to the nearest unit. D) Calculate how much money in Sales must be generated to break- even. UNITS $ Problem 4 (20 points) Year 2015 2016 Production-units Total Cost $ 100,000 500,000.00 $ 150,000 750,000.00 $ 230,000 1,250,000.00 $ 175,000 850,000.00 $ 1, 350,000 450,000.00 2017 2018 2019 Answer Using the high-low method calculate the fixed cost, showing the answer for each step: a) Unit's difference b) Cost's difference c) Unit Cost d) Fixed cost UNITS UNITS $ $
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