9.
Selling price per unit = $3
Variable cost per unit = $1
Contribution margin per unit = Selling price per unit - Variable cost per unit
= 3-1
= $2
Contribution margin ratio = Contribution margin per unit/ Selling price per unit
= 2/3
= 66.67%
Fixed cost = $1,000
Break even sales (in dollars) = Fixed cost / Contribution margin ratio
= 1,000/66.67%
= $1,500
Margin of safety = Current sales - Break even sales
= 6,000-1,500
= $4,500
Margin of safety (%) = Margin of safety / Current sales
= 4,500/6,000
= 75%
Correct option is D.
10.
Sales = $700
Total variable cost = $560
Contribution margin = Sales - Total variable cost
= 700-560
= $140
Contribution margin ratio = Contribution margin / Sales
= 140/700
= 20%
Sales to get target profit = ( Fixed cost + Target profit)/ Contribution margin ratio
= (50+150)/20%
= $1,000
Correct option is E.
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please show work/give explaination DULU 9. Current sales revenue in dollars is $6,000. The price is...
9. Current sales revenue in dollars is $6,000. The price is $3 per unit, variable costs are $i per unit, and total fixed costs are $1,000. Compute the margin of safety: A not enough information-need to know the breakeven point B. 8.33% C. 25% D. 75% E. 91.67%
need help solving. thank you
Question 5 2.5 pts Current sales revenue in dollars is $6,000. The price is $3 per unit, variable costs are $1 per unit, and total fixed costs are $1,000. Compute the margin of safety: not enough information -- need to know the breakeven point 8.33% O 75% O 25% O 91.67%
. At current sales revenue of $700, total variable costs are $560 and total fixed costs are $50. Your oss gave you a profit target of $150. How much do you need to sell in dollars to meet this target? A. not enough information need data on units B. $200 C. $250 D. $760 E. $1,000
please show work/give explaination
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Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $1,000, and total fixed costs are $2,000 (no data on units). a) Compute the contribution margin ratio: CMR b) Write down the CVP relation (version 2): profit as a function of sales revenue. Profit = * Revenue - (e.g., if profit = 0.1*Revenue-500, enter 0.1 in the first box and 500 in the second box). c) Predict profit at sales revenue of $10,000: d) Your...
Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $3,000, and total fixed costs are $5,000 (no data on units). a) Compute the contribution margin ratio: CMR= b) Write down the CVP relation (version 2): profit as a function of sales revenue. Profit = * Revenue - (e.g., if profit = 0.1*Revenue-500, enter 0.1 in the first box and 500 in the second box). c) Predict profit at sales revenue of $10,000: d) Your...
need help solving. thank you
Question 6 2.5 pts At current sales revenue of $800, total variable costs are $640 and total fixed costs are $50. Your boss gave you a profit target of $150. How much do you need to sell in dollars to meet this target? O $840 O $1,000 not enough information -- need data on units O $250 O $200
need help calculating the break even revenue thank you
Question 2: CVP relation version 2 Current sales revenue is $5,000, total variable costs are $2,000, and total fixed costs are $2,000 (no data on units). a) Compute the contribution margin ratio: CMR = .6 b) Write down the CVP relation (version 2): profit as a function of sales revenue. Profit = 6 * Revenue - 2000 (e.g., if profit = 0.1*Revenue-500, enter 0.1 in the first box and 500 in...
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