Please help! And please explain how to get answers so I can learn how to do it on future problems. Thanks in advance! I'll be sure to give a thumbs up.
1) | Present net annual income or loss | ||||||||
Sales Revenue | $ 23,68,800 | ||||||||
(25200*$94) | |||||||||
Less: | |||||||||
Variable Cost | $ 16,12,800 | ||||||||
(25200*$64) | |||||||||
Contribution | $ 7,56,000 | ||||||||
Less: | |||||||||
Fixed Expenses | $ 8,30,400 | ||||||||
Loss | $ 74,400 | ||||||||
2) | Present Break-Even Point | ||||||||
Present Contribution Margin Per unit = $756000/25200 units | |||||||||
=$30 per unit | |||||||||
Break-even Point In-Unit = Fixed Cost/ Contribution Margin Per Unit | |||||||||
=$830400/30 | |||||||||
=27680 units | |||||||||
In dollares = 27680 units *$94 | |||||||||
=$2601920 | |||||||||
3) | Sales Price | 94 | 92 | 90 | 88 | 86 | 84 | 82 | |
Units | 25200 | 30200 | 35200 | 40200 | 45200 | 50200 | 55200 | ||
Sales Revenue | $ 23,68,800 | $ 27,78,400 | $ 31,68,000 | $ 35,37,600 | $ 38,87,200 | $ 42,16,800 | $ 45,26,400 | ||
Less: | |||||||||
Variable Cost | $ 16,12,800 | $ 19,32,800 | $ 22,52,800 | $ 25,72,800 | $ 28,92,800 | $ 32,12,800 | $ 35,32,800 | ||
Contribution | $ 7,56,000 | $ 8,45,600 | $ 9,15,200 | $ 9,64,800 | $ 9,94,400 | $ 10,04,000 | $ 9,93,600 | ||
Less: | |||||||||
Fixed Expenses | $ 8,30,400 | $ 8,30,400 | $ 8,30,400 | $ 8,30,400 | $ 8,30,400 | $ 8,30,400 | $ 8,30,400 | ||
Income (Loss) | $ -74,400 | $ 15,200 | $ 84,800 | $ 1,34,400 | $ 1,64,000 | $ 1,73,600 | $ 1,63,200 | ||
Maximum Profit | $ 1,73,600 | ||||||||
Number of units | 50200 | ||||||||
Selling Price | $ 84 | ||||||||
4) | Break-Even Points | ||||||||
Present Contribution Margin Per unit = $1004000/50200 units | |||||||||
=$20 per unit | |||||||||
Break-even Point In-Unit = Fixed Cost/ Contribution Margin Per Unit | |||||||||
=$830400/20 | |||||||||
=41520 units | |||||||||
In dollars = 41520 units *$84 per unit | |||||||||
$ 34,87,680 |
Please help! And please explain how to get answers so I can learn how to do...
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