Question
Woodland Inc. sells only a single product. Data from the companys most recent income statement is provided below. Sales (4,000 units) $120,000 variable expenses (68,000)
Woodland Inc. sells only a single product. Data from the companys most recent income statement is provided below. Sales (4,000 units) $120,000 variable expenses (68,000) Contribution margin (52,000) fixed expenses (40,000) Net Income (12,000)
a. Contribution margin per unit is____per unit
b. if sales are doubled to $240,000 total variable costs will equal $____
c. if sales are doubled to $240,000 total variable costs will equal $____
d. compute how many units must be sold to break even in unit. #_____
e. Compute how many units must be sold to achieve profits of $20,000. #____
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