Question
The Washington Company reported $4,000,000 in sales during the month and incurred variable expenses totaling $2,800,000 and fixed expenses totaling $720.000. A total of 80,000
The Washington Company reported $4,000,000 in sales during the month and incurred variable expenses totaling $2,800,000 and fixed expenses totaling $720.000. A total of 80,000 units were produced and sold last month. The Company has no beginning or ending inventories. Question: (a) What is the Companys total contribution margin and contribution margin per unit? (b) How many units would the Company have to sell to achieve a desired target profit of $600,000? (c) What is the Companys break-even point in sales dollars? (d) What is the Companys margin of safety in dollars?
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