1. What is the break-Even-Point (BEP) in units for the ABC corporation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. What is the break-Even-Point (BEP) in units for the ABC corporation?
2. what is the BEP in dollars for the ABC corporation?
3. What is the Target income in units for the ABC corporation?
4. What is the Target income in dollars for the ABC company?
5. What is the contribution Margin Ratio for the ABC company?

Transcribed Image Text:For ABC corporation do some CVP analysis (Break-Even-
Points and Target Income) per the data below using the
Excel document to verify your responses by making the
cells into green color. Then, answer some questions.
Sales Revenue per unit: $2000
COGS per unit: $550
Total Fixed Expenses: $630,750
Target Income: $400,000

Transcribed Image Text:Enter alternative values for fixed costs, contribution margin per unit,
contribution margin ratio, and target net income in the first four boxes below.
Then, recalculate and enter the new break-even and target income amounts
based on your revised assumptions; correct values will turn the last four boxes
green.
Total fixed costs
Contribution margin per unit
Contribution margin ratio
Target net income
Break-Even Point in Units
Break-Even Point in Sales
Units to Achieve Target Income
Sales to Achieve Target Income
1,200,000
1,200
0.60
600,000
1,000
2,000,000
1,500
3,000,000
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