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Round to the nearest unit of product, hundredth of a percent, and nearest cent where appropriate. (An example for unit calculations is 3,231.15 = 3,231;
Round to the nearest unit of product, hundredth of a percent, and nearest cent where appropriate. (An example for unit calculations is 3,231.15 = 3,231; an example for percentage calculations is 0.434532 = 0.4345 = 43.45 percent; an example for dollar calculations is $378.9787 = $378.98.)
- Calculate the weighted average contribution margin per unit.
- How many units in total must be sold to break even?
- How many units of each product must be sold to break even?
- How many units in total must be sold to earn a monthly profit of $100,000?
- How many units of each product must be sold to earn a monthly profit of $100,000?
- Using the base case information, preparecontribution margin income statement for the month similar to the one inFigure 6.5.
- Calculate the weighted average contribution margin ratio.
- Find the break-even point in sales dollars.
- What amount of sales dollars is required to earn a monthly profit of $80,000?
- Assume the contribution margin income statement prepared in requirementdis the company's base case. What is the margin of safety in sales dollars?
- If the sales mix shifts more toward the Finance Calculator product than the Solar Calculator product, would the break-even point in units increase or decrease? Explain. (Detail calculations are not necessary, but may be helpful in confirming your answer.)
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