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Accounting

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Nov 24, 2024

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10/30/23, 8:16 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4638399&cmid=1260603&page=8 1/3 Dashboard / My courses / [Seneca 09/2023] HTM440NHB - Nardi / CHAPTER 4 - Cost-Volume-Profit Analysis / Chapter 4 Post-Class Homework
10/30/23, 8:16 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4638399&cmid=1260603&page=8 2/3 Question 9 Not answered Mark 0.00 out of 6.00 Take me to the text Harry Corporation forecasts that next year it can sell 33,000 units of its family-sized ready-to-eat meals for $858,000. The expected contribution margin ratio is 60%. Fixed costs are estimated to be $316,000. Do not enter dollar signs or commas in the input boxes. a) What is the selling price per unit? Round your answer to 2 decimal places. Selling Price: $ b) Calculate the contribution margin if 25,000 units are produced and sold. Round your answer to the nearest whole number. Contribution Margin: $ c) Calculate the contribution margin per unit. Round your answer to 2 decimal places. CM per unit: $ d) If the company decides to sell its products in the open market, determine the amount of units required to break-even. Round up to the nearest whole unit. Break-Even Units: e) Determine the operating profit if 34,000 units are produced and sold. Round your answer to the nearest whole number. Operating Income: $ f) Determine the amount of revenue that needs to be generated to yield an operating profit of $93,000. Round your answer to the nearest whole number. Revenue: $ Explanation a) Total Revenue ÷ Number of Units Sold Selling Price: $26.00 b) Total Revenue x Contribution Margin Ratio Contribution Margin: $390,000 c) Contribution Margin ÷ Number of Units Sold CM per unit: $15.60 d) Fixed Costs ÷ CM per unit Break-Even Units: 20,257 e) (CM per unit x Number of Units Sold) - Fixed Costs Operating Income: $214,400 f) (Fixed Costs + Target Income) ÷ CM Ratio Revenue: $681,667
10/30/23, 8:16 PM Chapter 4 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4638399&cmid=1260603&page=8 3/3
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