eck my work ue: 66 polnts roblem 18-4A Part 4 Compute the sales level required i

Question

eck my work ue: 66 polnts roblem 18-4A Part 4 Compute the sales level required in both dollars and units to earn $200,000 of target pre-tax income income in 2010 with the machine installed and no change in unit sales price required in dollars Sales Dollars Required Sales dollars required Cho Nu Fixed costs plus pretax income ntribution margin ratio 0 50,000 ales level required in units Sales Units Required Sales units required Choose Numerator Choose Denominator contribution margin per unit , = Fixed costs plus pretax income References eBook & Resources Expanded table Difficulty. 3 Hard Problem 18-4A Part 4 Learning Objective . 18-A1 single and describe what it reveals about a company's structure

Explanation / Answer

Sales Perunit 1000000/20000 50 Variable cost per unit =(800000/20000)*50% 20 Contribution per unit 30 Contribution margin ratio 30/50 60% Fixed Cost plus pre tax income Contribution margin ratio Sales $                  6,50,000 / 60% =        10,83,333 Fixed Cost plus pre tax income Contribution margin per unit Sales units                  6,50,000 / 30 =              21,667

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.