Question
Sales (10,000 units) $ 240,000 variable costs 102,000 fixed costs 75,000 Required ( 3 points each) a. Contribution margin per unit is $ _______ _
Sales (10,000 units) $ 240,000
variable costs 102,000
fixed costs 75,000
Required ( 3 points each)
a. Contribution margin per unit is $ ________ per unit
b. If sales are doubled total variable costs will equal $ ________
c. If sales are doubled total fixed costs will equal $ ________
d. If 25 more units are sold, profits will increase by $ ________
e. Compute how many units must be sold to break even. ________units
f. Compute how many units must be sold to achieve
operating income of $75,000.________units
g. Compute the revenue needed to achieve an after tax
income of $40,000 given a tax rate of 40%. $ ________
h.Compute margin of safety$-------------
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