Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero O If sales above breakeven, then profit O If sales below breakeven, then loss O Fixed expenses = total contribution margin Total sales total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Answer Insert your answer. Insert your answer. Insert your answer.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Wk 3 - Set 1, Part 1
Complete the following 3 Wk 3 Financial Exercises: Problem Set
2, Part 2 problems using the following ratios:
Sales level at which operating income is zero
If sales above breakeven, then profit
If sales below breakeven, then loss
O
Wk 3 - Set 1, Part 2
O
O Fixed expenses = total contribution margin
Total sales = total expenses
Break Even Point: Unit Sold = Fixed expenses + Operating
Income / Contribution Margin per unit
Break Even Point: Sales $ = Fixed expenses + Operating Income /
Contribution Margin Ratio
Problem
1. Calculate the break even number of units if the fixed expenses
are $7,000 and the contribution margin is $14 per unit.
2. Calculate the break even sales dollars if the fixed expenses are
$7,000 and the contribution ratio is 40%.
3. Calculate the break even number of units with a target profit of
$120,000 if the fixed expenses are $15,000 and the contribution
margin is $60 per unit.
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Answer
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Wk 3 - Set 2, Part 1
Insert your answer.
your answer.
Insert your answer.
Wk 3 - Set 2, Part 2
EB
Insert Table
Wk 3 - Set 2, Part 3
Chart
A
Text Shape
Transcribed Image Text:View + 125% ✓ Zoom Index Wk 3 - Set 1, Part 1 Complete the following 3 Wk 3 Financial Exercises: Problem Set 2, Part 2 problems using the following ratios: Sales level at which operating income is zero If sales above breakeven, then profit If sales below breakeven, then loss O Wk 3 - Set 1, Part 2 O O Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit. Add Category Answer Insert Wk 3 - Set 2, Part 1 Insert your answer. your answer. Insert your answer. Wk 3 - Set 2, Part 2 EB Insert Table Wk 3 - Set 2, Part 3 Chart A Text Shape
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