solve question 9

Requirements: Calculate the following: Ch21 H.W 1 1-Contribution margin per unit. 2-Contribution margin ratio. Sami was just hired as a new accountant for a large manufacturing company. His supervisor is preparing a power point presentation about Cost - Volume - Profit analysis. He provided him with the following Information and asked him to do some parts as required below: 3- Variable cost ratio 4- Required units to achieve breakeven point. Total Sales in units Selling price per unit Variable cost per unit Total Fixed cost Target profit 40,000 units $ 20 $ 8 $ 300,000 $ 210,000 5- Required dollar sales to achieve breakeven point. 7- Required units to achieve target profit. 8- Required dollars to achieve target profit. 9- Income statement (Using contribution margin method) Ch21 Formula sheet Operating Income(C.M Method) Total Sales - Total Variable cost - Total Fixed Cost Contribution margin 10- Draw the Breakeven point graph. per unit Selling price per unit Variable cost per unit Total Sales - Total Variable cost Total Contribution margin Contribution margin ratio Variable Cost ratio Breakeven point in units Breakeven point in $ Contribution margin per unit/ Selling price per unit Variable cost per unit / Selling price per unit Total Fixed Cost / Contribution margin per unit Total Fixed Cost / Contribution margin ratio (Total Fixed Cost + target profit )/ Contribution margin per unit (Total Fixed Cost + target profit / Contribution margin ratio Number of units to reach a target profit Dollars sales to reach a target profit