Marlin Motors sells a single product with a selling price of $350 with variable costs per unit of $140. The company's monthly fixed expenses are $42,000. A. What is the company's break-even point in units? Break-even units 200 V units B. What is the company's break-even point in dollars? Break-even dollars $ 70,000 V Feedback

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Marlin Motors sells a single product with a selling price of $350 with variable costs per unit of $140. The company's monthly fixed expenses are $42,000.
A. What is the company's break-even point in units?
Break-even units
V units
007
B. What is the company's break-even point in dollars?
Break-even dollars $
A 000'0
Feedback
Check My Work
A. What is the contribution margin per unit? Determine this amount and use it to determine how many units are needed to cover the fixed costs.
B. How many units are needed to break even? Use amount to determine the total sales dollars needed.
C. Prepare a contribution margin income statement for the month of November when they will sell 110 units. Use a minus sign for a net loss if present.
Income Statement
Sales
24
38,500
Variable Costs
A00t
Contribution Margin
23,100
Fixed Costs
000
006-
Previo
Net Loss
Transcribed Image Text:%24 My Home ngagevoWv2| Online teachir x O ) (29) Doja Cat, The Weeknd ow.com/ilrn/takeAssignment/takeAssignmentMam.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false +| x eBook Marlin Motors sells a single product with a selling price of $350 with variable costs per unit of $140. The company's monthly fixed expenses are $42,000. A. What is the company's break-even point in units? Break-even units V units 007 B. What is the company's break-even point in dollars? Break-even dollars $ A 000'0 Feedback Check My Work A. What is the contribution margin per unit? Determine this amount and use it to determine how many units are needed to cover the fixed costs. B. How many units are needed to break even? Use amount to determine the total sales dollars needed. C. Prepare a contribution margin income statement for the month of November when they will sell 110 units. Use a minus sign for a net loss if present. Income Statement Sales 24 38,500 Variable Costs A00t Contribution Margin 23,100 Fixed Costs 000 006- Previo Net Loss
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D. How many units will Marlin need to sell in order to realize a target profit of $37,800?
New break-even units
units
E. What dollar sales will Marlin need to generate in order to realize a target profit of $37,800?
New break-even dollars $
Feedback
Check My Work
D. Remember that the break-even formula and the target profit formula are virtually the same. The only difference is that you are adding in the desired target prof
determine the amount required to reach that desired profit level. Use per unit contribution margin to determine the amount of needed units.
E. The amount determined in part D can be used here. How many sales dollars would be needed? What do you need to use in the calculation to determine that?
F. Construct a contribution margin income statement for the month of February that reflects $185,500 in sales revenue for Marlin Motors.
Income Statement
Sales
2$
Variable Costs
Contribution Margin
Fixed Costs
Net Income
24
Transcribed Image Text:A My Home gageNowv2| Online teachir x ) (29) Doja Cat, The Weeknd gagenow.com/ilrn/takeAssignment/takeAssignmentMa.uo?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook D. How many units will Marlin need to sell in order to realize a target profit of $37,800? New break-even units units E. What dollar sales will Marlin need to generate in order to realize a target profit of $37,800? New break-even dollars $ Feedback Check My Work D. Remember that the break-even formula and the target profit formula are virtually the same. The only difference is that you are adding in the desired target prof determine the amount required to reach that desired profit level. Use per unit contribution margin to determine the amount of needed units. E. The amount determined in part D can be used here. How many sales dollars would be needed? What do you need to use in the calculation to determine that? F. Construct a contribution margin income statement for the month of February that reflects $185,500 in sales revenue for Marlin Motors. Income Statement Sales 2$ Variable Costs Contribution Margin Fixed Costs Net Income 24
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