Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is information concerning a product manufactured by Ames Brothers. Sales price per unit $ 69 Variable cost per unit 43 Total fixed manufacturing

The following is information concerning a product manufactured by Ames Brothers.

Sales price per unit $ 69
Variable cost per unit 43
Total fixed manufacturing and operating costs (per month) 360,000

a. Determine the unit contribution margin.

b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.)

c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)

image text in transcribed

The following is information concerning a product manufactured by Ames Brothers. $ Sales price per unit Variable cost per unit Total fixed manufacturing and operating costs (per month) 69 43 360,000 a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.) a. Unit contribution margin b. Break-even units C. Target sales in units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Endangered Economies How The Neglect Of Nature Threatens Our Prosperity

Authors: Geoffrey Heal

1st Edition

0231180845, 9780231180849

More Books

Students also viewed these Accounting questions

Question

5. Save raster im?

Answered: 1 week ago