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.  Contribution margin ratio. Enter the 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 the final answer to the nearest dollar. $fill in the blank 7 d.  Sales revenue needed to achieve a target profit of $215,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round the final answer to the nearest dollar.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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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 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.  Contribution margin ratio. Enter the 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 the final answer to the nearest dollar.
$fill in the blank 7

d.  Sales revenue needed to achieve a target profit of $215,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round the final answer to the nearest dollar.

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