Homework Answers
| Please refer the solution below: |
| Statement showing computation: |
| 1) calculation of contribution margin ratio: |
| Selling price per unit= 750000/30000= $25 |
| Variable cost per unit= 450000/30000= $15 |
| Contribution margin pe unit= selling price-variable cost per unit= 25-15= $10 |
| Contribution margin ratio= Contribution/selling price*100 |
| = 10/25*100=40% |
| Contribution margin ratio is 40% |
| 2) Calculation of break even point in units : |
| break even point= Fixed cost/ contribution margin per unit |
| =210000/10=21000 units |
| Break even point in units= 21000 units |
| 3) Calculation of break even point in dollars: |
| Break even point in dollars= Fixed cost/contribution margin ratio |
| Break even point in dollars=210000/0.40= $525000 |
| Break even in sales dollar= $525000 |
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1)Contribution margin (CM)ratio and variable expense ratio.
2)Break-even point (BEP) in UNIT SALES and RM ( ) using equation
method.
3)If sales increase by RM60,000 for the next month and there is no
change in the cost behavior patterns, how much will the company’s
net operating increase by using the Contribution Margin
(RM)Ratio.
4)Based on the original data, if the company wants to earns a
minimum profit of RM300,000, HOW many units will have to be sold to
meet...
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Calculate:
1)Contribution margin (CM)ratio and variable expense ratio.
2)Break-even point (BEP) in UNIT SALES and RM ( ) using equation
method.
3)If sales increase by RM60,000 for the next month and there is no
change in the cost behavior patterns, how much will the company’s
net operating increase by using the Contribution Margin
(RM)Ratio.
4)Based on the original data, if the company wants to earns a
minimum profit of RM300,000, HOW many units will have to be sold to
meet...
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