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13) Pembroke Corporation has provided the following contribution format income statement. All questions concern situations th
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Answer #1
Part-a
BEP Point in Unit Sales= Fixed Expense / Contribution Margin per Unit
80000/20= 4000 Unit
* Contribution Margin Per Unit = Contribution Margin / Unit Sales
60000/3000=$20per Unit
Part-b
BEP Point in $ Sales = Fixed Expense / Contribution Margin Ratio
80000/40%= $200000
*CM Ratio= Contribution/ Sales
60000/150000= 40%
Part-c
No. of Unit to be Sold= (Fixed Expense+ Target Profit)/ CM per Unit
=(80000+30000)/20= 5500 Unit
Part-d
Fixed Expense Ratio= Fixed Expense/Sales
80000/150000= 53.33%
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