Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sandhill produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $312,000. Its annual fixed
Sandhill produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $312,000. Its annual fixed costs include factory rent, $62,400; depreciation expense; equipment, $15,600; utilities, $31,200; insurance, $12,480. Its variable costs include materials, $39 per unit, and direct labour, $52 per unit. Sandhill's income tax rate is 20%. * Your answer is incorrect. What is the contribution margin per unit? Contribution margin per unit 117 e Textbook and Media X Your answer is incorrect. What is the contribution margin ratio? Contribution margin ratio 10 % * Your answer is incorrect. How many units must Sandhill sell to break even? (Round answer to the next whole integer, e.g. 1,255.) Sales 9360 units e Textbook and Media Your answer is partially correct. If Sandhill would like to earn a profit after tax of $16,000, what should the sales be? At this sales level, what is the degree of operating leverage? What is the margin of safety in unit? (Round total sales and margin of safety to 0 decimal places, e.g. 5,125. Round degree of operating leverage to 2 decimal places, e.g. 15.16.) Total Sales $ 472267 Degree of operating leverage 36504 Margin of safety units X Your answer is incorrect. If Sandhill would like to earn a profit after tax that is 8% of sales, what should the sales be? How many units does Sandhill need to increase from the current sales level? Total Sales $ 2361335 Units to be increased by units eTextbook and Media
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started