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6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin...

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. 0.

B. $16200.

C. $24300.

D. The amount of variable costs at the breakeven point.

7. Sandhill Corporation reported the following results from the sale of 7200 units in March: sales $360000, variable costs $216000, fixed costs $108000, and operating income $36000. Assume that Sandhill increases the selling price by 8% on April 1. How many units will have to be sold in April to maintain the same level of operating income?

A. 3600.

B. 6480.

C. 6000.

D. 7200.

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Answer #1

Question ~6 Target Profit $ 78000 80% $ 97500 Target sales = fixed cost + Profit CM Ratio cm Ratio - X 40% (476) - 4 x 100 =Question - 7 sales $360000 x 1087.5 388 800 388 800 – 216000 o contribution Margin 172800 172800 cm per unit = = 24 7200 1080

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