GEM company has a unit selling price of GEM Company has a unit selling price of $790, variable costsper unit of $545, and fixed costs of $285,000.Compute the break-even point in units usingthe mathematical equation and(b) the unit contribution margin.

a) Mathematical Equation The break-even point in units is calculated using the following formula:…

Answered: GEM Company has a unit selling price of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio:(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
If the unit selling price is $68 and the variable cost per unit is $20 and the total fixed costs are $456,655, then the contribution margin ratio is: (Round your answer to two decimal places and leave your answer in a decimal form, not a percentage.)
1. Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65. PLEASE NOTE: The per-unit Contribution Margin will be rounded in whole dollars and shown with "$" and commas as needed (i.e. $12,345). A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio? PLEASE NOTE: The Contribution Margin Ratio will be shown as a percentage, shown with "%" and rounded to three decimal places (i.e. 12.3%).
1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: b. Sales Dollar Breakeven Point: C. Unit Sales Breakeven Point:
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Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %
What isbthe overall contribution margin ratio ?
Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are $1600 and profits are $5700 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =
5. The unit variable cost is $6.43, unit selling price is $10, total fixed costs are $638.03, and the projected sales are 430 units. Calculate: a. Net income b. Contribution Margin
If the sale price per unit is $7, the unit contribution margin is $3, and total fixed expenses are $19,500, the breakeven sales in units is:

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GEM Company has a unit selling price of $790, variable costs per unit of $545, and fixed costs of $285,000. Compute the break-even point in units using the mathematical equation and (b) the unit contribution margin.