In 2019, X Company sold 5,050 units of its only product. Total revenue was $1,272,600, total...

Question

Question

In 2019, X Company sold 5,050 units of its only product. Total revenue was $1,272,600, total variable costs were $475,710, an

Answer 1

Answer #1

Sales price per unit was=(1,272,600/5050)=$252 per unit

Variable cost per unit was=(475710/5050)=$94.2 per unit

Hence new Variable cost=(94.2+4.4)=$98.6 per unit

Contribution margin=Sales-Variable cost

=(252-98.6)=$153.4 per unit

New fixed cost=687,000+45600=$732600

Target Contribution margin=Fixed cost+Target profit

=(732600+34000)=$766,600

Hence units to be sold=766,600/153.4

=4997.39 units(Approx).

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Answer 2

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