Question
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 60
[The following information applies to the questions displayed below.] |
Data for Hermann Corporation are shown below: |
Per Unit | Percent of Sales | |||
Selling price | $ | 60 | 100% | |
Variable expenses | 39 | 65% | ||
Contribution margin | $ | 21 | 35% | |
Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. |
Required: | |
1. | Compute the companys break-even point in unit sales and in dollar sales. |
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4. | Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $73,000 per month? (Round your answer to the nearest whole number.) |
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