Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable per pound of fertilizer is $0.15. Evergreon sells the fertilizer for $0.40 per pound. a) Determine the break-even volume for the company. What is the Contribution Margin? b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. Wha will the change have on the break-even volume. What is the Contribution Margin? c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a we killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What will this change have on the break-even volume.

Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable per pound of fertilizer is $0.15. Evergreon sells the fertilizer for $0.40 per pound. a) Determine the break-even volume for the company. What is the Contribution Margin? b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. Wha will the change have on the break-even volume. What is the Contribution Margin? c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a we killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What will this change have on the break-even volume.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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