Polk Company developed the following information for its product: Sale price (per unit) Variable cost ( per unit) 90 54 Fixed Cost 1,080,000 Required: Answer the following independent questions and show computations using the contribution margin technique to support your answers. (treat each question independently) a) How many units must be sold to break even? b) What is the total sales that must be generated for the company to earn a profit of S60,000? 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? c)

Polk Company developed the following information for its product: Sale price (per unit) Variable cost ( per unit) 90 54 Fixed Cost 1,080,000 Required: Answer the following independent questions and show computations using the contribution margin technique to support your answers. (treat each question independently) a) How many units must be sold to break even? b) What is the total sales that must be generated for the company to earn a profit of S60,000? 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? c)

Name: Question 2Polk Company developed the following information for its pr
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Description: Question 2Polk Company developed the following information for its product:Sale price (per unit)Variable cost (per unit)9054Fixed Cost1,080,000Required:Answer the following independent questions and show computations using the contributionmargin tec

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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