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Target Profit Outdoors Company sells a product for $100 per unit. The variable cost is $50 per unit, and fixed costs are $325,000. Determine (a)
Target Profit Outdoors Company sells a product for $100 per unit. The variable cost is $50 per unit, and fixed costs are $325,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $104,000. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $104,000 units High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 7,200 $478,800 2,700 307,800 4,460 377,570 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) per unit Total fixed cost: b. Based on part (a), estimate the total cost for 3,560 units of production. Total cost for 3,560 units: Contribution Margin Ratio a. Yountz Company budgets sales of $1,160,000, fixed costs of $60,000, and variable costs of $266,800. What is the contribution margin ratio for Yountz Company? (Enter your answer as a whole number.) % b. If the contribution margin ratio for Vera Company is 36%, sales were $832,000, and fixed costs were $224,640, what was the income from operations? Break-Even Sales Currently, the unit selling price of a product is $370, the unit variable cost is $300, and the total fixed costs are $1,155,000. A proposal is being evaluated to increase the unit selling price to $410. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $410, and all costs remain constant. units
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