Question
XYZ Company is a retailer of widgets. XYZ pays $4.10 for each widget and sells them for $8.50. Monthly fixed costs are $31,240. The widget
| XYZ Company is a retailer of widgets. XYZ pays $4.10 for each widget and sells them for $8.50. Monthly fixed costs are $31,240. The widget cost is the only variable cost. |
| a. | What is the contribution margin per unit?(Round your answer to 2 decimal places. Omit "$" sign in your response.) |
| Contribution margin | $per unit |
| b. | What is the break-even point in units?(Do not round intermediate calculations.) |
| Break-even point | units |
| c. | How many units will XYZ need to sell to earn target profit of $29,480?(Do not round intermediate calculations.) |
| Total number of units |
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
Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
9th Edition
111970958X, 9781119709589
