(14).
Fixed costs |
+ |
Target profit |
/ |
CM per unit |
= |
Required sales in units |
$7125 |
+ |
$0 |
/ |
$75 |
= |
95 units |
Working Note;
Contribution margin = Sale price – Variable cost
Sale price = $150
Variable cost = ($45 + $30) = $75
Thus, contribution margin ($150 – $75) = $75
(15).
Fixed costs |
+ |
Target profit |
/ |
CM per unit |
= |
Required sales in units |
$6825 |
+ |
$0 |
/ |
$105 |
= |
65 units |
Working Note;
Contribution margin = Sale price – Variable cost
Sale price = $150
Variable cost = $45
Thus, contribution margin ($150 – $45) = $105
New fixed costs ($7125 – $300) = $6825
(16).
Fixed costs |
+ |
Target profit |
/ |
CM per unit |
= |
Required sales in units |
$7125 |
+ |
$0 |
/ |
$165 |
= |
44 units |
Working Note;
Contribution margin = Sale price – Variable cost
New sale price ($150 + $60) = $210
Variable cost = $45
Thus, contribution margin ($210 – $45) = $165
Required units ($7125 / $165) = 43.18 or 44 units
the tables sell for $150 and incur $45 View History People Window Help Secure 47503&questionld 1&flushed...