Compute the missing amounts for the following table Click the lcon to view the t

Question

Compute the missing amounts for the following table Click the lcon to view the table) Compute missing amour. (Etter te ontbution margin ratib nearest perent, X%) Data Table Sale price per unit Variable costs per unit Total fixed costs Target profe Calculate Contibution margin per unt Contribuion margin rao Required units to break even Required sales dolars to break even Required units to achieve larget pro 10 125 100 40,000 100,000 $ 280$ 125 100 79 590 60,00040,000 209 04075,000 00,000 Sales price per unit Variable costs per unt Tolal fxed costs arget prof Calculate Contritution margin per unt Contribution margin ratio Required units to break even Required sales dolars to break even Required unts to achieve target prott 9,590 60,000 70 09,840 75.000 Print Done

Explanation / Answer

Contribution margin Per unit = sales price per unit - variable costs per unit

A = 280-70 = 210

B = 10-6 = 4

C = 125-100 = 25

Contribution margin ratio = contribution margin Per unit / selling price per unit

A= 210 / 280 = 75%

B = 4 / 10 = 40%

C = 25 / 125 = 20%

Required units to break even = fixed costs / contribution margin Per unit

A = 79590 / 210 = 379 units

B = 60000/4 = 1500 Units

C = 40000/25 = 1600 units

Required sales dollars to break even = fixed costs / contribution margin ratio

A = 79590 / 75% = $106120

B = 60000 / 40% = $150,000

C = 40000/25% = $160,000

Required units to achieve target profits = (fixed costs + target profit) / contribution margin Per unit

A = (79590+269640) / 210 = 1663 units

B = (60000+75000) / 4 = 33750 units

C = (40000+100000) / 25 = 5600 units

A B C Contribution margin Per unit 210 4 25 Contribution margin ratio 75% 40% 20% Required units to break even 379 1500 1600 Required sales dollars to break even 106120 150000 160000 Required units to achieve target profit 1663 33750 5600

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