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The following is the cost structure for the one product that ABC Company Produces. Given this information calculate the required information: Selling price per unit
The following is the cost structure for the one product that ABC Company Produces. Given this information calculate the required information: Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed expenses per month $ 60,000 Do not use commas, decimal points or dollars signs in your answers. a. What is the Breakeven in both units and Sales Dollars? Use the space below to show your work. Break Even in Units = Fixed Expenses/Contribution Margin per unit Number of Units? Break Even in Sales Dollars = Fixed Expenses/CM Ratio Break Even in Sales $ b. What is the Target Profit in both units and Sales Dollars if the ABC Company wants to have a Net Operating Income before tax of $75,000? Use the space below to show your work. Target Profit in Units = Fixed Expenses + Target Profit/Contribution Margin per unit Target Profit in Units? Target Profit in Sales Dollars = Fixed Expenses + Target Profit/CM Ratio Target Profit in Sales 5
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