Publix sold 1,000 units last month which yielded the income statement below. Sales $20,000 Variable Expenses 12,000 Contribution Margin 8,000 Fixed Expenses 6,000 Net Income $2,000 Answer the questions that follow using the given information. 1. What is Publix's contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the break-even point in units? 4. What is the break-even point in dollars? 5. How many units have to be sold to reach a target profit of $5,000?

Publix sold 1,000 units last month which yielded the income statement below. Sales $20,000 Variable Expenses 12,000 Contribution Margin 8,000 Fixed Expenses 6,000 Net Income $2,000 Answer the questions that follow using the given information. 1. What is Publix's contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the break-even point in units? 4. What is the break-even point in dollars? 5. How many units have to be sold to reach a target profit of $5,000?

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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