Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Co. manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: a)
XYZ Co. manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: a) What is the contribution margin per unit? Contribution margin per unit =$ b) What is the company's CM ratio? Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12\%) CM ratio = c) What is the quarterly break-even point in units? d) What is the quarterly break-even point in dollars? Break-even point in dollars =$ e) How many units would have to be sold each quarter to earn a target profit of $48,000 ? g) Refer to the original data. Compute the company's margin of safety in dollars. Margin of safety =$ h) Refer to the original data. Compute the company's margin of safety percentage. Please make sure your final answer(s) are ir percentage form and are accurate to the nearest whole percent. (For example: 12\%) Margin of safety = i) If sales increased by $56,000 per quarter and there is no change in fixed costs, by how much would you expect quarterly nneratina income to increase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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