Question

Compute the missing amounts for the following table. (Click the icon to view the table.) Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.) $ $ $ Sale price per unit Variable costs per unit A 1,000 600 79,200 268,800 B 3,000 1,500 150,000 4,500,000 1,600 800 640,000 680,000 Total fixed costs Target profit Calculate: Contribution margin per unit Contribution margin ratio Required units to break even Required sales dollars to break even Required units to achieve target profit

Answer 1

Contribution margin per unit = Sales -Variable cost per unit

Contribution margin ratio = Contribution margin per unit/sales per unit

Break even unit = Fixed cost/contribution margin per unit

Required sales per break even = Break even unit*contribution margin per unit + fixed cost

Required units to achieve target profit = (target profit + fixed cost)/contribution margin per unit

Below table contains all the value

	A	B	C
Sales	$                     1,000.00	$                     3,000.00	$                     1,600.00
Variable cost per unit	$                         600.00	$                     1,500.00	$                         800.00
Total fixed cost	$                   79,200.00	$               1,50,000.00	$               6,40,000.00
Target profit	$               2,68,800.00	$             45,00,000.00	$               6,80,000.00
Calculate:
Contribution margin per unit	$                         400.00	$                     1,500.00	$                         800.00
Contribution margin ratio	40%	50%	50%
Required units to break even	198	100	800
Required sales dollar to break even	$               1,58,400.00	$               3,00,000.00	$             12,80,000.00
Required units to achieve target profit	870	3100	1650