Answered step by step
Verified Expert Solution
Question
1 Approved Answer
White Light Electric estimates the following for 2018: Sales Revenue (25,000 units) Variable Costs Fixed Costs $ 2.750.000 1,500,000 450.000 a) Contribution Margin per unit
White Light Electric estimates the following for 2018: Sales Revenue (25,000 units) Variable Costs Fixed Costs $ 2.750.000 1,500,000 450.000 a) Contribution Margin per unit b) Contribution Margin ratio c) Break-Even in units d) Break-Even in sales dollars e) What is the break-even point in units if fixed costs increase to $660,000? f) How many units need to be sold to earn a pre-tax profit of $300,000? g) What is the break-even point in units if the sales price increases by 10%? h) If sales volume increases by 4%. By how much will net income increase? i) If the sales price increases by 3%, by what percentage will net income increase? j) If variable costs increase by $10, and fixed costs increase by 25%, what will be the new break-even point in units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started