Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rundle Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $49 Variable costs Manufacturing Selling 16 per

image text in transcribed

Rundle Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $49 Variable costs Manufacturing Selling 16 per unit 7 per unit Fixed cost Manufacturing Selling and administrative $163,000 per year $180,200 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $182,000 C. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,700 units how much could it pay in salaries for salespeople and still have a profit of $182,000? (Hint: Use the equation method.) 13,200 Break-even point in dollars$646,800 20,200 $989,800 a. Break-even point in units b. Required sales in units Required sales in dollars c. Fixed cost of salaries

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

More Books

Students also viewed these Accounting questions

Question

Write down the Limitation of Beer - Lamberts law?

Answered: 1 week ago

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago