Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000   a. Calculate the contribution margin percentage.    b. Calculate the selling price if variable costs are $16 per unit.    c. Suppose 75 000 units are sold. Calculate the profit earned.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000

 

a. Calculate the contribution margin percentage. 

 

b. Calculate the selling price if variable costs are $16 per unit. 

 

c. Suppose 75 000 units are sold. Calculate the profit earned.

 

d. Will the company be profitable if able to sell 30,000 units? Explain. 

 

c. What should the company do to increase its profit above break-even point? 

 

 

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