FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ABC Corp has the following information:
Number of units: 3600
Sales Price per Unit $50
Variable Cost perUnit 10
Total Fixed Costs 80000
Target Operating Income 100000
Calculate:
Contribution Margin per Unit
Contribution Margin Ratio
Breakeven point in Units
Breakeven point in sales dollars
Units to achieve target operating income
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- < Contribution Margin Harry Company sells 24,000 units at $26 per unit. Variable costs are $17.16 per unit, and fixed costs are $72,100. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) c. Operating income A LA % per unit Darrow_forwardIf fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110, the break-even sales (units) if fixed costs are increased by $43,800 is a.14,172 units b.17,006 units c.11,337 units d.21,258 unitsarrow_forwardYou are provided with the following data. I Unit sales 5 Selling price per unit 5 7 8 Variable expenses per unit Fixed expenses Target Profit 9 10 Required: 11 12 13 Contribution margin per unit 14 15 CM ratio 16 Variable expense ratio 17 18 Compute the break-even. 19 20 Break-even in unit sales $ Dagate ssss is $ 80,000 units 70 per unit 28 per unit Compute the CM ratio and variable expense ratio. $ 2,688,000 $ 1,610,000arrow_forward
- Zachary Company reported the following data regarding the product it sells: 11 Sales price Contribution margin ratio Fixed costs 48 25% $336,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,0000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c Break-even point in dollars Break-even point in unitsarrow_forward1. What would be the gross margin for FPD if it accepted the transfer price that will be charged by CD?arrow_forwardPlease help mearrow_forward
- Given breakeven sales in units of 32,000 and a unit contribution margin of $10, how many units must be sold to reach a target operating income of $16,000? 1,600 33,600 30,600 160,000arrow_forwardPlease help me with show all calculation thankuarrow_forwardIf fixed costs are $1,300,000, the unit selling price is $208, and the unit variable costs are $105, what is the break-even point in sales units if fixed costs are increased by $42,600? a. 13,035 units b. 15,642 units c. 10,428 units d. 19,552 unitsarrow_forward
- Determine the missing amounts. Unit Selling Price 1. 2. 3. $ $500 $250 (e) LA $ LA Unit Variable Costs $200 (c) +A $ Unit Contribution Margin $65 (f) $560 (a) Cc Marrow_forwardA. Determine the missing amounts S.No Unit Selling Price Unit Variable Cost Contribution Margin per unit Contribution Margin Ratio 1 2 3 550 1500 (e) 370 (c) (f) (a) 600 900 (b) (d) 30 B. For Al Farabi Company, variable costs are 75% of sales, and fixed costs are $210,000.Management’snet income goal is $70,000. Compute the required sales needed to achieve management’s target net income of $70,000. (Use the mathematical equation approach.) C. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain.arrow_forwardVinubhaiarrow_forward
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