Assume total fixed costs of $156800, variable costs per unit of $8, and contribution margin per...
6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin per unit of $4. What are the sales dollars required to earn a target net income of $78000 assuming a tax rate of 20%? A. $546000 B. $867750 C. $780000 D. $819000 6. Assume a sales price per unit of $20, variable cost per unit $10, and total fixed costs of $16200. If no units are sold, how much cost would the company incur?...
A contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and variable expenses. Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit. Fill in the contribution margin income statement when 730 units are...
1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the variable expense ratio? 4.If sales increase to 1,001 units, what would be the increase in net operating income? 5.If sales decline to 900 units, what would be the net operating income? 6.If the selling price increases by $2.50 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7.If the variable cost per unit increases by $1.50,...
Assume the unit contribution margin is $10. Sales are $1,000,000, variable costs are $200,000 and fixed costs are $700,000. How many units must be sold to earn a profit of $100,000? a. 80,000 b. 10,000 c. 90,000 d. 100.000
If total fixed costs are $360,000, the contribution margin per unit is $20, and targeted operating income is $27,000, how many units must be sold to breakeven? OA. 18,000 OB. 540,000 O C. 7.200,000 D. 19,350 If total fixed costs are $360,000, the contribution margin per unit is $20, and targeted operating income is $27,000, how many units must be sold to breakeven? OA. 18,000 OB. 540,000 O C. 7.200,000 D. 19,350
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
A product sells for $20 per unit, and has a contribution margin ratio of 40%. Fixed expenses total $120,000 annually. The company that makes and sells the product has an income tax rate of 40%. How many units must be sold to yield an after-tax operating profit of $30,000?
A company has a unit contribution margin of $50, fixed costs of $15,000 and a target profit of $20,000 after-tax. If the tax rate is 20% the company must sell ________ units in order to earn the target profit.
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...