1) | Variable expenses per unit = Sales price - contribution margin ratio | |||||
=$26-30% | ||||||
=$18.20 | ||||||
2) | Contribution Margin Per Unit = Sales price - variable cost per unit | |||||
= $26-18.2 | ||||||
= $7.8 per unit | ||||||
Break-even Point In Unit = Fixed Cost/ Contribution Margin Per Unit | ||||||
= $132600/7.8 | ||||||
=17000 units | ||||||
Break even point in dollars= $26*17000 | ||||||
=$442000 | ||||||
3) | = (Desired profit + Fixed cost)/ contribution margin per unit | |||||
= ($54600 + $132600) /7.8 | ||||||
=$187200/7.8 | ||||||
=24000 units | ||||||
Dollars sales for target profit = $26*24000 units | ||||||
=$624000 | ||||||
4) | Revised variable cost = $18.20-2.60 | |||||
=$15.60 | ||||||
Contribution Margin Per Unit = Sales price - variable cost per unit | ||||||
= $26-15.6 | ||||||
= $10.4 per unit | ||||||
Break-even Point In Units = Fixed Cost/ Contribution Margin Per Unit | ||||||
= $132600/10.4 | ||||||
=12750 units | ||||||
Break Even Point Dollars sale s= $26*12750 | ||||||
=$331500 | ||||||
Sales required for desired profit | ||||||
= ($54600 + $132600) /10.4 | ||||||
=$187200/10.4 | ||||||
=18000 units | ||||||
Sales in dollars = $26*18000 units | ||||||
$ 4,68,000 | ||||||
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