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New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent. a. Compute the unit sales price and unit contribution margin for the above product. b. Compute the sales volume in units required for New Berlin Corporation to earn an operating income of $600,000 c. Compute the dollar sales volume required for New Berlin Corporation to earn an operating income of $600,000.

New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent. a. Compute the unit sales price and unit contribution margin for the above product. b. Compute the sales volume in units required for New Berlin Corporation to earn an operating income of $600,000 c. Compute the dollar sales volume required for New Berlin Corporation to earn an operating income of $600,000.

FINANCIAL ACCOUNTING
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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ACCT 102 - Please Do All Subparts

New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent. a. Compute the unit sales price and unit contribution margin for the above product. b. Compute the sales volume in units required for New Berlin Corporation to earn an operating income of $600,000 c. Compute the dollar sales volume required for New Berlin Corporation to earn an operating income of $600,000. a. Unit sales price Unit contribution margin b Sales volume in units units C Sales volume in dollars
Transcribed Image Text:New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a contribution margin ratio of 40 percent. a. Compute the unit sales price and unit contribution margin for the above product. b. Compute the sales volume in units required for New Berlin Corporation to earn an operating income of $600,000 c. Compute the dollar sales volume required for New Berlin Corporation to earn an operating income of $600,000. a. Unit sales price Unit contribution margin b Sales volume in units units C Sales volume in dollars
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