Contribution Margin per unit Sale per price-Variable cost per unit %3D =0,60-0,22 %3D 0.38 per unit Break-even Volume = Fixed Cost/Contribution Margin per unit = 25,000/0.38 per unit %3D = 65,789 %3D 6.lf Evergreen Fertilizer Company increases its advertising expenditures by $14.000 per year, what effect will the increase have on the break-even volume computed in Problem ?
Contribution Margin per unit Sale per price-Variable cost per unit %3D =0,60-0,22 %3D 0.38 per unit Break-even Volume = Fixed Cost/Contribution Margin per unit = 25,000/0.38 per unit %3D = 65,789 %3D 6.lf Evergreen Fertilizer Company increases its advertising expenditures by $14.000 per year, what effect will the increase have on the break-even volume computed in Problem ?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4BE
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Question
100%
![Contribution Margin per unjt Sale per price-Variable cost per unit
3D0,50-0.22
3D0.38per unit
Break-even Volume Fixed Cost/Contribution Margin per unit
3D25,000/0,38 per unit
=65,789
6.1f Evergreen Fertilizer Company increases its advertising expenditures by
$14,000 per year, what effect will the increase have on the break-even volume
computed in Problem ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2e39e61-dca9-41c1-9f54-094b5c9d6d45%2F9c6e815e-af47-4fb6-88a8-7c5afcd27cb6%2Foruswen_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Contribution Margin per unjt Sale per price-Variable cost per unit
3D0,50-0.22
3D0.38per unit
Break-even Volume Fixed Cost/Contribution Margin per unit
3D25,000/0,38 per unit
=65,789
6.1f Evergreen Fertilizer Company increases its advertising expenditures by
$14,000 per year, what effect will the increase have on the break-even volume
computed in Problem ?
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