Model M Model N 10,000 10000 $240000 5000000 Fined overhead per Estimated profabove capacit $160.000 $100.000 The product manufactured using this type of machine (M or N) is sold at $100 per unit. Among the given options, determine level of sales at which both the models will earn thesame profit. 7,000 units 8.000 units 6,000 units 5.500 units

Model M Model N 10,000 10000 $240000 5000000 Fined overhead per Estimated profabove capacit $160.000 $100.000 The product manufactured using this type of machine (M or N) is sold at $100 per unit. Among the given options, determine level of sales at which both the models will earn thesame profit. 7,000 units 8.000 units 6,000 units 5.500 units

Name: Model M Model NInstalled capacity (tFred overhead per aEstimated prof
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Description: Model M Model NInstalled capacity (tFred overhead per aEstimated profit ut above capacit $160,000 $100.00010,000 10:000$240.000 $100.000The product manufacturedusing this type of machine(M or N) is sold at $100 perunit.Among the given options,determ

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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Question 2 Polk Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63) Contribution margin $27 Total fixed costs $1,080,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? What is the total sales that must be generated for the company to earn a profit of $60,000? If the company is presently selling 45,000 units, but plans to spend an additional $108,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? Using the original data in the problem, compute a new break-even point in units if the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $210,000.
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Total Costs Variable Costs Fixed Costs Total Costs Costs per unit Variable cost per unit Fixed cost per unit 008 S Total cost per unit 0082 $ 60,000 101 150,000 Units produced and sold 80,000 001500 4.50 erinoM nsl 100,000 doa 19A Gigi's Gadgets manufactures and sells a single product. A partially completed schedule of the co total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold durir given year are listed above. 1. Complete the schedule for the company's total and unit costs above.matul ad quizU 2. Assume that the company sells 90,000 during a year. The selling price is $7.50 per unit. an income statement using the contribution margin format for that year.
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