Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Completion Status: QUESTION 4 28 point In 2019, Pamela Harrigan Enterprises widgets has a selling price per unit of $90, the variable costs per

image text in transcribed
image text in transcribed
Question Completion Status: QUESTION 4 28 point In 2019, Pamela Harrigan Enterprises widgets has a selling price per unit of $90, the variable costs per unit were $60, and the total fixed costs were $1,215,000. Management expects per unit data and total fixed costs to be the same in 2020. Management has set a goal of earning profit of $600,000 in 2020. Instructions: Answer each of the following questions. Round each dollar amount to the nearest cents. Round each percentage to the nearest 100th or two decimal places. Round up on the number of units. 1. What is the contribution margin per unit? $30 2. What is the contribution margin percentage? 67.5 3. What is the breakeven in sales dollars? 4. How many units will be sold in 2020 if there will be a profit of $600,000? 10,000 5. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety? Management has set a goal of ea Question Completion Status: Instructions: Answer each of the following questions. Round each dollar amount to the nearest cents. Round each percentage to the nearest 100th or two decimal places. Round up n the number of units. 1. What is the contribution margin per unit? $30 2. What is the contribution margin percentage? 67.5 3. What is the breakeven in sales dollars? 4. How many units will be sold in 2020 if there will be a profit of $600,000? 10,000 5. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety? 6. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety percentage? 7. Compute a new break-even point in units of the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $236,100. ave and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Sav

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

Computer Fraud Casebook The Bytes That Bite

Authors: Joseph T. Wells

1st Edition

0470278145, 978-0470278147

More Books

Students also viewed these Accounting questions