1.calculate the contribution margin per unit. 2. Calculate contribition margin per ration 3. Which of the 8 cost categories would be considered valuable, and why? Explain. 4. Which cost would be considered mixed e.g semi variable or sem fixed.? 5. Ignoring utility costs altogether, compute contribution margin per unit, in dollars and in percentage and the break even levels of sales. 6. Ignoring utility costs altogether, if instead of break even the firm wants to make $10,000 monthly profit answer the following. . How many units must be sold? . To how many sales dollars is in this unit volume equivalent? . In year 2,, the CEO plans to add $300,000/year expenses in added administrative salaried headcount. Ignoring utility altogether, how many additional units must be sold just to pay this added expense?
The corporate you work for has asked for a summary and report of the future projections for the next 5 years. With the help of the CFO, you have put together the following preliminary figures based on the last year's numbers for a planned production and sales level of 4,000 units per year.
Building
Machine operator $100,000 per year
Management staff. $400,000 per year
Direct materials $4,000,000/year.
Other expenses that seem to vary based on production levels. $3,000,000/year.
Other expenses that doesn't seem vary. $1,300,000/year.
Selling price per unit. $5,0000/ unit.
Utilities.
You have the following data to which you pay for the high-low method.
.when there is no production, utility costs are $20,000/month.
. When production levels reached 4,000 units, unit cost totalled $40,000 per month.
1.calculate the contribution margin per unit.
2. Calculate contribition margin per ration
3. Which of the 8 cost categories would be considered valuable, and why? Explain.
4. Which cost would be considered mixed e.g semi variable or sem fixed.?
5. Ignoring utility costs altogether, compute contribution margin per unit, in dollars and in percentage and the break even levels of sales.
6. Ignoring utility costs altogether, if instead of break even the firm wants to make $10,000 monthly profit answer the following.
. How many units must be sold?
. To how many sales dollars is in this unit volume equivalent?
. In year 2,, the CEO plans to add $300,000/year expenses in added administrative salaried headcount. Ignoring
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