Homework Answers
Answer- The dollar amount of sale must be made to produce the target income = (Fixed costs+ Target income)/Contribution margin ratio
= ($83000+$15000)/40%
= $98000/40%
= $245000
Answer- The amount should have been reported as variable costs in the company’s contribution margin income statement for the year =$1700000.
Explanation- Variable costs= Sales-Contribution margin
= $3200000-$1500000
= $1700000
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B.
number of units above break-even times contribution margin per
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A company sells a product with a contribution margin ratio of
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company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
$2,000,000
Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
number of units above break-even times contribution margin per
unit...
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