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Prosser Corporation has provided the following budgeted data: Fixed Expenses Variable Expenses Budgeted Sales Selling Price $100,000 $12 per unit 15,000 units. $20 per
Prosser Corporation has provided the following budgeted data: Fixed Expenses Variable Expenses Budgeted Sales Selling Price $100,000 $12 per unit 15,000 units. $20 per unit A) Calculate contribution margin per unit. B) Calculate contribution margin ratio. C) Calculate the break-even point in units. D) Calculate the break-even point in sales dollars. E) Calculate the margin of safety in dollars (based on budgeted sales). F) Prosser Corp. would like to earn an operating profit of $20,000. How many units must they sell to earn this profit? G) Prosser Corp. has just been informed that its supplier is instituting a $1.50 per unit price increase for the following year. Prosser Corp.'s fixed expenses are also expected to increase by 10%. Prosser Corp.'s marketing department feels that customers will only absorb a 5% price increase. What will Prosser Corp.'s new breakeven point be with these changes?
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