Question
This question is based on this chart and additional info: January-17 $78,000 5,679 February-17 $91,000 6,751 March-17 $100,000 7,539 April-17 $78,000 5,335 May-17 $89,000 6,480
This question is based on this chart and additional info:
January-17 | $78,000 | 5,679 |
February-17 | $91,000 | 6,751 |
March-17 | $100,000 | 7,539 |
April-17 | $78,000 | 5,335 |
May-17 | $89,000 | 6,480 |
June-17 | $93,000 | 7,630 |
July-17 | $87,000 | 6,331 |
August-17 | $94,000 | 7,998 |
September-17 | $81,000 | 5,943 |
October-17 | $85,000 | 7,081 |
November-17 | $100,000 | 7,694 |
December-17 | $104,000 | 8,903 |
January-18 | $92,000 | 7,485 |
February-18 | $104,000 | 9,062 |
March-18 | $96,000 | 8,189 |
April-18 | $77,000 | 5,410 |
May-18 | $83,000 | 6,556 |
June-18 | $95,000 | 7,850 |
July-18 | $65,000 | 4,836 |
August-18 | $92,000 | 6,828 |
September-18 | $77,000 | 6,221 |
October-18 | $105,000 | 8,238 |
November-18 | $103,000 | 7,842 |
December-18 | $96,000 | 8,086 |
January-19 | $83,000 | 6,887 |
February-19 | $100,000 | 8,438 |
March-19 | $83,000 | 5,829 |
April-19 | $79,000 | 5,639 |
May-19 | $74,000 | 5,703 |
June-19 | $81,000 | 6,455 |
July-19 | $82,000 | 6,370 |
August-19 | $74,000 | 5,684 |
September-19 | $72,000 | 4,906 |
October-19 | $73,000 | 5,026 |
November-19 | $92,000 | 7,630 |
December-19 | $65,000 | 4,014 |
Overhead Costs | Units Produced |
The company analyzes their costs and finds the following:
Each unit of inventory uses 2 gallons of materials and each gallon costs $3. On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift. Each month Random spends $26,500 on selling and administration costs. Sales price for 2020 is estimated at $36 per unit.
What is the contribution margin per unit? Round to the nearest cent.
How many units does the company need to sell in a month to break even in 2020?
How many units does the company need to sell in a month to make $30,000 of profit before taxes?
How much in dollars must Random sell in a month to make $100,000 in profit before taxes?
Show the predicted contribution margin format income statement for January if production and sales are 7,100 units.
Show the predicted contribution margin format income statement for February if selling costs are increased by $2,000/month, a new machine increases fixed overhead by $6,000 and makes it so that workers can make 24 in a shift and sales increase by 200 units.
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