Homework Answers
| A) | Sale price = $9078000/102000 | ||||||
| =$89 | |||||||
| Variable cost per unit = $2958000/102000 | |||||||
| =$29 | |||||||
| Contribution Margin Per Unit = Sales price - variable cost per unit | |||||||
| = $89-29 | |||||||
| = $60 per unit | |||||||
| Break-even Point In Unit = Fixed Cost/ Contribution Margin Per Unit | |||||||
| = $5700000/60 | |||||||
| =95000 units | |||||||
| B) | Number of units need to be sold for proft $450000 | ||||||
| = (Desired profit + Fixed cost)/ contribution margin per unit | |||||||
| = ($450000 + $5700000) /50 | |||||||
| =$6150000/50 | |||||||
| =123000 units | |||||||
| C) | Price should charge =$89+3 | ||||||
| =$92 | |||||||
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The information that follows was obtained from the accounting records of Portofino Manufacturing during a period...
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1.
2.
3.
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