Break-Even AnalysisFeet-First Industries plans to sell 7,750 sleds at $60 each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals $44,540 and fixed selling and administrativeexpense equals $34,780.a. Calculate the units that Feet-First must sell in order to break even.0b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin.$ 0c. Confirm your answer in requirement b, by muliplying the number of break-even units in requirement a by the unit sales price.$ 0

Step 1:a) Fixed cost = fixed factory overhead + fixed selling and administrative expenses = $44,540…

Answered: Break-Even Analysis Feet-First…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Break-Even Sales Currently, the unit selling price of a product is $220, the unit variable cost is $180, and the total fixed costs are $288,000. A proposal is being evaluated to increase the unit selling price to $240. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
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Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 135,000 units of antibiotic at an average price of $23 each in the coming year. Total variable costs equal $1,055,700. Total fixed costs equal $7,900,000. Required: 1. What is the contribution margin per unit? Round the answer to the nearest cent.$fill in the blank 1 What is the contribution margin ratio? Round the answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.)fill in the blank 2 2. Calculate the sales revenue needed to break even. Round the answer to the nearest dollar.$fill in the blank 3 3. Calculate the sales revenue needed to achieve a target profit of $215,000. Round the answer to the nearest dollar.$fill in the blank 4 4. What if the average price per unit increased to $24.50? Recalculate the following: a. Contribution margin per unit. Round the answer to the nearest cent.$fill in the blank 5 b.…
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