A firm expects to sell 26.000 units of its product at $12.00 per unit and to...

Question

Question

A firm expects to sell 26.000 units of its product at $12.00 per unit and to incur variable costs per unit of $7.00. Total fi

Kent Manufacturing produces a product that sells for $69.00 and has variable costs of $34.00 per unit. Fixed costs are $434.0

Answer 1

Answer #1

1. Total Contribution margin

= (12-7)*26,000

= 130,000

Option A

2. Units needed = (Fixed costs +Target profit) /contribution margin per unit

= (993,600+1,285,000)/(700-378)

= 7076

Option B

3. Contribution margin per unit = 69 - (34-5)

= 40

Option C

Answer 2

Similar Homework Help Questions

A firm expects to sell 24,600 units of its product at $10.60 per unit and to...

A firm expects to sell 24,600 units of its product at $10.60 per unit and to incur variable costs per unit of $5.60. Total fixed costs are $66,000. The total contribution margin is: Multiple Choice Ο Ο S57000. Ο O 566,000. Ο Ο S123,000. $137760. $203760.
A firm expects to sell 25,000 units of its product at $11 per unit and to...

A firm expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6. Total fixed costs are $70,000. The total contribution margin is:
16 MC Qu. 78 A firm expects to sell... 005 A firm expects to sell 26,000 units of its product at $12.00 per unit an...

16 MC Qu. 78 A firm expects to sell... 005 A firm expects to sell 26,000 units of its product at $12.00 per unit and to incur variable costs per unit of $700. Totalfixed costs are $80,000. The total contribution marginis M iple Choice O $60.000 $130.000 $80,000 5182,000

A firm expects to sell 25,200 units of its product at $11.20 per unit and to...

A firm expects to sell 25,200 units of its product at $11.20 per unit and to incur variable costs per unit of $6.20. Total fixed costs are $72,000. The total contribution margin is: Watson Company has monthly fixed costs of $74,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,100, what dollar amount of sales must be made to produce the target Income?
A firm expects to sell 26,000 units of its product at $11 per unit. Pretax income...

A firm expects to sell 26,000 units of its product at $11 per unit. Pretax income is predicted to be $61,000. If the variable costs per unit are $6, total fixed costs must be: Multiple Choice $69,000. $156,000. $225,000. $43,000. $286,000
Flannigan Company manufactures and sells a single product that sells for $580 per unit, variable costs...

Flannigan Company manufactures and sells a single product that sells for $580 per unit, variable costs are $319. Annual fixed costs are $958,500. Current sales volume is $4,330,000. Compute the contribution margin per unit. Multiple Choice Ο Ο Ο Ο Ο A company's product sells at $12.22 per unit and has a $5.33 per unit variable cost. The company's total fixed costs are $96,900 The contribution margin per unit is: Multiple Choice Ο $8.06. Ο $5.33. Ο $6.89. Ο $12.22....

Flannigan Company manufactures and sells a single product that sells for $600 per unit: variable costs...

Flannigan Company manufactures and sells a single product that sells for $600 per unit: variable costs are $324. Annual fixed costs are $984.400. Current sales volume is $4.340,000. Compute the break-even point in units. Multiple Choice Ο Ο 1,641. Ο 3,567. Ο 4,697. Ο Ο 3,038. Ο Ο 528. Forrester Company is considering buying new equipment that would increase monthly fixed costs from $577.500 to $741.000 and would decrease the current variable costs of $75 by $10 per unit. The...
MC Qu. 151 Kent Manufacturing produces a product... Kent Manufacturing produces a product that sells for $70.00 and...

MC Qu. 151 Kent Manufacturing produces a product... Kent Manufacturing produces a product that sells for $70.00 and has variable costs of $36.00 per unit Fixed costs are $408,000. Kent can buy a new production machine that will increase fixed costs by $28.800 per year but will decrease variable costs by $5.00 per unit Compute the contribution margin per unit if the machine is purchased . O O O O Prey 1 of 20 Next >
A firm expects to sell 25,500 units of its product at $16 per unit. Pretax income...

A firm expects to sell 25,500 units of its product at $16 per unit. Pretax income is predicted to be $60,500. If the variable costs per unit are $8, total fixed costs must be:

A firm expects to sell 25,100 units of its product at $9 per unit. Pretax income...

A firm expects to sell 25,100 units of its product at $9 per unit. Pretax income is predicted to be $60,100. If the variable costs per unit are $4, total fixed costs must be: $225,900. $65,400. $165,800. $100,400. $40,300.