Cost-Volume Profit Analysis Incline Company generated $1,400,000 in revenue selling 800 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). a. What is the contribution margin ratio for Incline’s product? Answer 1 % b. Calculate the break-even point in revenue for Incline? $Answer 2
Cost-Volume Profit Analysis Incline Company generated $1,400,000 in revenue selling 800 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). a. What is the contribution margin ratio for Incline’s product? Answer 1 % b. Calculate the break-even point in revenue for Incline? $Answer 2
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...
Related questions
Question
Cost-Volume Profit Analysis
Incline Company generated $1,400,000 in revenue selling 800 units of its only product. Each unit has a contribution margin of $280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume).
a. What is the contribution margin ratio for Incline’s product?
Answer 1
%
b. Calculate the break-even point in revenue for Incline?
$Answer 2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College