Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has estimated the following: contribution margin per phone $200  variable cost per Cellphone 450  annual fix cost total 180,000  net loss -$400  Given: Variable Cost as a %of sales 70% Annual fixed costs - total $600,000   What is the contribution margin ratio? What is the break even point in sales dollars? If the company is operating at a $100,000 loss what are the dollar sales? If the company is operating at a $100,000 profit what are the dollar sales?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has estimated the following:

contribution margin per phone $200 

variable cost per Cellphone 450 

annual fix cost total 180,000 

net loss -$400 

Given:

Variable Cost as a %of sales 70%
Annual fixed costs - total $600,000

 

What is the contribution margin ratio?

What is the break even point in sales dollars?

If the company is operating at a $100,000 loss what are the dollar sales?

If the company is operating at a $100,000 profit what are the dollar sales?

 

 

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