Question

compute the missing amounts for the following table

ent, X%.) Data Table Sales price per unit Variable costs per unit Total fixed costs Target profit Calculate: Contribution margin per unit 1,200 $ 125 $ 5,660 900504,528 81,000 67,500 1,584,800 261,000 1,500,000 1,324,440 Contribution margin ratio Required units to break even Required sales dollars to break even Required units to achieve target profit Print Print Done Done

Answer 1

Particulars

Formulas

A

B

C

Cont. margin per unit

Sales Price p.u - Variable cost p.u

$ 1200 - $ 900

$ 125 - $ 50

$ 5660 - $ 4528

=

$        300.00

=

$           75.00

=

$         1,132.00

Cont. margin ratio

(Cont. margin p.u / Sales price p.u) x 100

($ 300 / $ 1200) x 100

($ 75 / $ 125) x 100

($ 1132 / $ 5660) x 100

=

25%

=

60%

=

20%

Req. units to break even

Fixed cost / Cont. margin p.u

$ 81000 / $ 300

$ 67500 / $ 75

$ 1584800 / $ 1132

=

270

units

=

900

units

=

1400

units

Req. sales dollars

Fixed cost / Cont. margin ratio

$ 81000 / 25%

$ 67500 / 60%

$ 1584800 / 20%

=

$ 324,000.00

=

$ 112,500.00

=

$ 7,924,000.00

Target profit

(Fixed cost + Target profit) / Cont. margin

($ 81000 + $ 261000) / $ 300

($ 67500 + $ 1500000) / $ 75

($ 1584800 + $ 1324440) / $ 1132

=

1140

units

=

20900

units

=

2570

units