1) Break Even sales = Fixed cost / CM Ratio
CM Ratio :
1,600,000 * CM ratio = 220,000
CM ratio = 220,000 / 1,600,000 = 13.75 %
Projected Profit at 2,400,000 Sales =
Sales * CM ratio - Fixed cost
= 2,400,000*13.75% - 220,000 = $ 110,000
Answer: Projected Profit $ 110,000
2)
Contribution MArgin Per Unit = Net operating income / MArgin of Safety in Units
= 6,575 / 263 = 25 Per Unit
Net operating Income = Units Sold * CM Per Unit - Fixed Cost
6,575 = (6,170 *25) -Fixed cost
= 154,250 -6575 = Fixed cost
= $ 147,675
Answer : Fixed cost = $ 147,675
NE Savod Help Save & Exit A company has fixed costs of $220,000 and breakeven sales...
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A company has fixed costs of $220,000 and breakeven sales of $1,600,000. What is the projected profit at $2,400,000 sales? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) Projected profit= $
A company has fixed costs of $250,000 and breakeven sales of $1,600,000. What is the projected profit at $2,400,000 sales? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g.-1000 for a decrease or loss of one thousand.) Projected profit= $
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A producer of a single product had the following results for the year just ended: Unit Sales Margin of Safety in Units Net operating income 6,220 units 263 units 6,575 $ How much was fixed cost for the year? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease...
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