Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Question

Question

Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per unit, and the sales price is $35.00 per unit. Jordan desires to earn an annual profit of $62,000.

Required
Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Contribution Margin Ratio= (Sales - Variable cost )/ Sales

=(35-21.35)/35= 39%

Computation required sales for desired Profit

Required Contribution= Fixed Cost+ Desired Profit

( 89515+62000)/39%= $388500

Sales Volume in Unit= 388500/ $35= 11100 Unit

Sales Voulme in $= $388500

Add a comment

Answer 2

Similar Homework Help Questions

Jordan Company incurs annual fixed costs of $145,600. Variable costs for Jordan's product are $27.00 per...

Jordan Company incurs annual fixed costs of $145,600. Variable costs for Jordan's product are $27.00 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $56,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Rooney Company incurs annual fixed costs of $101,420. Variable costs for Rooney’s product are $21.35 per...

Rooney Company incurs annual fixed costs of $101,420. Variable costs for Rooney’s product are $21.35 per unit, and the sales price is $35.00 per unit. Rooney desires to earn an annual profit of $46,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Baird Company incurs annual fixed costs of $98,700. Variable costs for Baird’s product are $22.75 per...

Baird Company incurs annual fixed costs of $98,700. Variable costs for Baird’s product are $22.75 per unit, and the sales price is $35.00 per unit. Baird desires to earn an annual profit of $63,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Fanning Company incurs annual fixed costs of $83.530. Variable costs for Fanning's product are $30.15 per...

Fanning Company incurs annual fixed costs of $83.530. Variable costs for Fanning's product are $30.15 per unit, and the sales price is $45.00 per unit. Fanning desires to earn an annual profit of $62,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Salos in dollars Sales volume in units
Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per...

Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per unit, and the sales price is $35.00 per unit. Solomon desires to earn an annual profit of $55,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Campbell Company incurs annual fixed costs of $110.055. Variable costs for Campbell's product are $22.05 per...

Campbell Company incurs annual fixed costs of $110.055. Variable costs for Campbell's product are $22.05 per unit, and the sales price is $35.00 per unit. Campbell desires to earn an annual profit of $57000 Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Salos in dollars Sales volume in units

Zachary Company incurs annual fixed costs of $111,000. Variable costs for Zachary’s product are $21.00 per unit, and the...

Zachary Company incurs annual fixed costs of $111,000. Variable costs for Zachary’s product are $21.00 per unit, and the sales price is $35.00 per unit. Zachary desires to earn an annual profit of $57,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit.
Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per...

Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per unit, and the sales price is $40.00 per unit. Rundle desires to earn an annual profit of $64,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Thornton Company incurs annual fixed costs of $78,965. Variable costs for Thornton's product are $34.50 per...

Thornton Company incurs annual fixed costs of $78,965. Variable costs for Thornton's product are $34.50 per unit, and the sales price is $50.00 per unit. Thornton desires to earn an annual profit of $61,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units

Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per...

Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per unit, and the sales price is $30.00 per unit. Finch desires to earn an annual profit of $50,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units

Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Homework Answers

Add Answer to:
Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Post as a guest

Earn Coins

Jordan Company incurs annual fixed costs of $145,600. Variable costs for Jordan's product are $27.00 per...

Rooney Company incurs annual fixed costs of $101,420. Variable costs for Rooney’s product are $21.35 per...

Baird Company incurs annual fixed costs of $98,700. Variable costs for Baird’s product are $22.75 per...

Fanning Company incurs annual fixed costs of $83.530. Variable costs for Fanning's product are $30.15 per...

Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per...

Campbell Company incurs annual fixed costs of $110.055. Variable costs for Campbell's product are $22.05 per...

Zachary Company incurs annual fixed costs of $111,000. Variable costs for Zachary’s product are $21.00 per unit, and the...

Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per...

Thornton Company incurs annual fixed costs of $78,965. Variable costs for Thornton's product are $34.50 per...

Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per...

Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Homework Answers

Add Answer to: Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...

Post as a guest

Earn Coins

Add Answer to:
Jordan Company incurs annual fixed costs of $89,515. Variable costs for Jordan’s product are $21.35 per...