A product sells for $40 per unit and has a contribution margin ratio of 60%. Fixed expenses total $150,000 annually. How many units must be sold to yield a profit of $50,000?
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- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.A product sells for $30 per unit and has a contribution margin ratio of 45%. Fixed expenses total $130,000 annually. How many units must be sold to yield a profit of $40,000?How many units must be sold?
- How many units must be sold yield a profit of 50000?Menka Company has annual fixed costs totaling $135,000 and variable costs of $4 per unit. Each unit of product is sold for $18. Menka expects to sell 14,500 units this year. How many units must be sold to earn an annual profit of $60,000? HelpPlease give me answer general accounting
- The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of sales, while fixed costs will total R110,000. At what price must each widget be sold for the company to achieve an EBIT of R95,000?GreenLeaf Grocers has monthly rent of $5,000, salaries of $12,000, and utilities of $3,000. If their desired profit is $20,000 and their contribution margin ratio is 40%, what should be their total sales?Based on potential sales of 600 units per year, a new product at Weston Industries has estimated traceable costs of $1,200,000. What is the target price to obtain a 20% profit margin on sales?
