Question
Traves Company produces one type of machine with the following costs andrevenues for the year: Total revenues $4,200,000 Total fixed costs $1,400,000 Total variable costs
Traves Company produces one type of machine with the following costs andrevenues for the year:
Total revenues $4,200,000
Total fixed costs $1,400,000
Total variable costs $2,800,000
Total units produced and sold 700,000 units
Required:
(a) What is the selling price per unit?
(b) What is the variable cost per unit?
(c) What is the contribution margin per unit?
(d) What is the breakeven point in units?
(e) How many units must be sold for Traves to make an operating profit of$1,000,000 for the year?
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Financial Accounting For Management
Authors: N Ramachandran
3rd Edition
1259004694, 978-1259004698
