the tables sell for $150 and incur $45 View History People Window Help Secure 47
ID: 2549555 • Letter: T
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the tables sell for $150 and incur $45 View History People Window Help Secure 47503&questionld; 1&flushed; false&cld; 4957987¢erwin...; S ACCT 3010 12pm Homework: HW CH 21 ini Score: 0.2 of 1 pt 2 of 15 (2 complete) Hw Score: 7.73%, 1.16 of 15 pts T121-4 (similar to Question Help furniture manfacturer specializes in wood tables. The tablies sell for $150 and inour $45 in variable coats. The company has $7,125 in fixed costs per month Calculate the breakaven pont in units under each independent scenario 14. Variable costs increase by $30 per unit 15. Fiwed costs decrease by $300 16 Sales poe remises by 40% Begin by selecting the formula labels. Then enter the amounts to compute the mumber of wood tables the company must sell to break even under each Independent uset "corebuban magin Completo aa answer bones For noms with a zero value, enter Round the point the required sales in unts-up to the nearest whole unit. For example, 1025 would be rounded to 11. Fixed costs Target pof CM perunt Require sales in units 14. ( Enter any number in the edit feicds and then cick Check Answer Clear Al Final Check MacBook Air 5 6Explanation / Answer
(14).
Fixed costs
+
Target profit
/
CM per unit
=
Required sales in units
$7125
+
$0
/
$75
=
95 units
Working Note;
Contribution margin = Sale price – Variable cost
Sale price = $150
Variable cost = ($45 + $30) = $75
Thus, contribution margin ($150 – $75) = $75
(15).
Fixed costs
+
Target profit
/
CM per unit
=
Required sales in units
$6825
+
$0
/
$105
=
65 units
Working Note;
Contribution margin = Sale price – Variable cost
Sale price = $150
Variable cost = $45
Thus, contribution margin ($150 – $45) = $105
New fixed costs ($7125 – $300) = $6825
(16).
Fixed costs
+
Target profit
/
CM per unit
=
Required sales in units
$7125
+
$0
/
$165
=
44 units
Working Note;
Contribution margin = Sale price – Variable cost
New sale price ($150 + $60) = $210
Variable cost = $45
Thus, contribution margin ($210 – $45) = $165
Required units ($7125 / $165) = 43.18 or 44 units
Fixed costs
+
Target profit
/
CM per unit
=
Required sales in units
$7125
+
$0
/
$75
=
95 units
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