Information concerning a product produced by Ender Company appears here: 2$ %24 165 Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 94 $482,800 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Information concerning a product produced by Ender Company appears here:
165
Sales price per unit
Variable cost per unit
Total annual fixed manufacturing and operating
94
$482,800
costs
Required
Determine the following:
灣
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $127,800.
d. Determine the margin of safety in units, sales dollars, and as a percentage.
彩
Complete this question by entering your answers in the tabs below.
Req A to C
Req D
a. Contribution margin per unit.
b. Number of units that Ender must sell to break even.
C. Sales level in units that Ender must reach to earn a profit of $127,800.
a. Contribution margin
per unit
b. Break-even in units
c. Sales in units
Req A to C
Req D >
Mc
Graw
Transcribed Image Text:Information concerning a product produced by Ender Company appears here: 165 Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 94 $482,800 costs Required Determine the following: 灣 a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage. 彩 Complete this question by entering your answers in the tabs below. Req A to C Req D a. Contribution margin per unit. b. Number of units that Ender must sell to break even. C. Sales level in units that Ender must reach to earn a profit of $127,800. a. Contribution margin per unit b. Break-even in units c. Sales in units Req A to C Req D > Mc Graw
Expert Solution
Step 1

Contribution margin per unit = Selling price per unit - Variable cost per unit

 

Break-even units = Fixed cost/Contribution margin per unit

 

Units required to earn target profit = (Target profit + Fixed cost)/Contribution margin per unit

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