Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 100,000 units of antibiotic at an average price of $15 each in the coming year. Total variable costs equal $480,000. Total fixed costs equal $8,400,000. 4. What if the average price per unit increased to $16.50? Recalculate the following: a.  Contribution margin per unit. Round your answer to the nearest cent. b.  Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. fill in the blank 6 c.  Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d.  Sales revenue needed to achieve a target profit of $260,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit

Schylar Pharmaceuticals, Inc., plans to sell 100,000 units of antibiotic at an average price of $15 each in the coming year. Total variable costs equal $480,000. Total fixed costs equal $8,400,000.

4. What if the average price per unit increased to $16.50? Recalculate the following:

a.  Contribution margin per unit. Round your answer to the nearest cent.

b.  Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.
fill in the blank 6

c.  Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

d.  Sales revenue needed to achieve a target profit of $260,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

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