Marlin Motors sels a single product with a selling price of $450 with variable costs per unit of $180. The company's monthly fixed expenses are $40,500. A. What is the company's break-even point in units? Break-even units 150 units B. What is the company's break-even point in dollars? Break even dollars $ 15,000 C. Prepare a contribution margin income statement for the month of November when they will sell 100 units. Use a minus sign for a net loss if present. Income Statement Sales 45,000 Variable Costs 18,000 Contribution Marqin 27,000 Fixed Costs 40,500 Net Loss 13,500 D. How many units will Marlin need to sell in order to realize a target profit of $48,600? New break-even units 254.57 units E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,600? New break-even dollars $ 101,828.
Marlin Motors sels a single product with a selling price of $450 with variable costs per unit of $180. The company's monthly fixed expenses are $40,500. A. What is the company's break-even point in units? Break-even units 150 units B. What is the company's break-even point in dollars? Break even dollars $ 15,000 C. Prepare a contribution margin income statement for the month of November when they will sell 100 units. Use a minus sign for a net loss if present. Income Statement Sales 45,000 Variable Costs 18,000 Contribution Marqin 27,000 Fixed Costs 40,500 Net Loss 13,500 D. How many units will Marlin need to sell in order to realize a target profit of $48,600? New break-even units 254.57 units E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,600? New break-even dollars $ 101,828.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Making sure I go this problem right? I am not sure the number look right on part D and E.
![b Marlin Motors sells a single X
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Marlin Motors selks a single product with a selling price of $450 with variable costs per unit of $180. The company's monthly fixed expenses are $40,500.
A. What is the company's break-even point in units?
Break-even units
150 units
B. What is the company's break-even point in dollars?
Break-even dollars $
15,000
C. Prepare a contribution margin income statement for the month of November when they will sell 100 units. Use a minus sign for a net loss if present.
Income Statement
Sales
45,000
Variable Costs
18,000
Contribution Margin
27,000
Fixed Costs
40,500
Net Loss
13,500
D. How many units will Marlin need to sell in order to realize a target profit of $48,600?
New break-even units
254.57 units
E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,600?
New break-even dollars $ 101,828.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2cb0ffc9-875b-4a39-9673-e3fe5f3bb555%2Fb9d54149-9e59-4434-a0cb-0b6b07b18227%2Fx3l9b7r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b Marlin Motors sells a single X
* CengageNOWv2 | Online te x
O Chapter 3 Homowork Ques
Star Login
B Chapter 3 Quiz - ACCT-230 X
takeAssignment/takeAssignmentMain.do?inprogress-true
Marlin Motors selks a single product with a selling price of $450 with variable costs per unit of $180. The company's monthly fixed expenses are $40,500.
A. What is the company's break-even point in units?
Break-even units
150 units
B. What is the company's break-even point in dollars?
Break-even dollars $
15,000
C. Prepare a contribution margin income statement for the month of November when they will sell 100 units. Use a minus sign for a net loss if present.
Income Statement
Sales
45,000
Variable Costs
18,000
Contribution Margin
27,000
Fixed Costs
40,500
Net Loss
13,500
D. How many units will Marlin need to sell in order to realize a target profit of $48,600?
New break-even units
254.57 units
E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,600?
New break-even dollars $ 101,828.
Expert Solution
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Step 1
Number of units to be sold to earn a target profit
= (Fixed cost + Target profit)/contribution per unit
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