Compute the missing amounts for the following table. LOADING... (Click the icon
ID: 2780182 • Letter: C
Question
Compute the missing amounts for the following table.
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Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)
A
Number of units
771
units
Sale price per unit
$600
Variable costs per unit
150
Total fixed costs
82,800
Target profit
264,150
Calculate:
Contribution margin per unit
Contribution margin ratio
%
Required units to achieve target profit
Required units to break even
Required sales dollars to break even
A
Number of units
771
units
Sale price per unit
$600
Variable costs per unit
150
Total fixed costs
82,800
Target profit
264,150
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to achieve target profit
Required units to break even
Required sales dollars to break even
B
3,060
units
$1,250
750
130,000
1,400,000
C
5,600
units
$125
100
40,000
100,000
A
Number of units
771
units
Sale price per unit
$600
Variable costs per unit
150
Total fixed costs
82,800
Target profit
264,150
Calculate:
Contribution margin per unit
Contribution margin ratio
%
Required units to achieve target profit
Required units to break even
Required sales dollars to break even
A
Number of units
771
units
Sale price per unit
$600
Variable costs per unit
150
Total fixed costs
82,800
Target profit
264,150
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to achieve target profit
Required units to break even
Required sales dollars to break even
Explanation / Answer
Contribution margin per unit= Sales price per unit- variable price per unit
= (600-150)= $ 450 per unit
Contribution margin ratio= Contribution per unit/ sales per unit
=(450/600)= 0.75 or 75%
Required units to acheive the target profit:
Required Contribution = Target profit+ Fixed cost
=82800+264150
= $ 346950
Required units to acheive target Profit= Required contribution / Contribution per unit
= 346950/ 450
= 771 units
Required units to breakeven= Fixed cost / Contribution per unit
= 82800/ 450
= 184 units
Required sales dollar break even= BEP units * sales price per unit
= 184*600= $ 110400
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