Contribution margin per unit
Contribution margin per unit = Selling price per unit – Variable cost per unit
= $35.00 per unit - $21.00 per unit
= $14.00 per unit
Contribution margin ratio
Contribution margin ratio = [Contribution margin per unit / Selling price per unit] x 100
= [$14.00 / $35.00] x 100
= 40.00%
(a)-Break-even sales in dollars
Break-even sales in dollars = [Total fixed cost + Desired profits] / Contribution margin ratio
= [$71,000 + $55,000] / 0.40
= $126,000 / 0.40
= $315,000
(b)-Break-even sales volume in units
Break-even sales volume in units = Break-even sales in dollars / Selling price per unit
= $315,000 / $35.00 per unit
= 9,000 Units
Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per...
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.
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
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
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.)
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.)
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
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
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
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
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