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Sunshine Inc. sells a single product. The companys most recent income statement is given below: Sales (4000 units) $ 120,000 Less variable expenses $ (68,000)
Sunshine Inc. sells a single product. The companys most recent income statement is given below:
Sales (4000 units) | $ 120,000 |
Less variable expenses | $ (68,000) |
Contribution margin | $ 52,000 |
Less fixed expenses | $ (40,000) |
Net Income | $ 12,000 |
Answer each of the following questions and show all work:
A.) Contribution margin per unit is:
B.) If sales are doubled to $240,000, total variable costs will equal:
C.) If sales are doubled to $240,000, total fixed costs will equal:
D.) If Sunshine is past the breakeven point and 10 more units are sold, profits will increase by:
E.) Calculate how many units must be sold to break even:
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