QUESTION 4 Save Ans Anson Ltd has three product lines of belts - Metal belt, Cinch belt and Bow belt with contribution margins of $3, $2 and $1, respectively. The CEO forecasts sales of 200,000 units in the coming period, consisting of 20,000 units of Metal belts, 100.000 units of Cinch belts and 80.000 units of Bow belts. The company's fixed costs for the period are $255,000. Required What is the new break-even point in units for each type For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). product lines if the sales mix is maintained in the next period? * Arial 10pt B IU s Paragraph

QUESTION 4 Save Ans Anson Ltd has three product lines of belts - Metal belt, Cinch belt and Bow belt with contribution margins of $3, $2 and $1, respectively. The CEO forecasts sales of 200,000 units in the coming period, consisting of 20,000 units of Metal belts, 100.000 units of Cinch belts and 80.000 units of Bow belts. The company's fixed costs for the period are $255,000. Required What is the new break-even point in units for each type For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). product lines if the sales mix is maintained in the next period? * Arial 10pt B IU s Paragraph

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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Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 120,000 units of antibiotic at an average price of $25 each in the coming year. Total variable costs equal $960,000. Total fixed costs equal $7,200,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) fill in the blank 2 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar. 3. Calculate the sales revenue needed to achieve a target profit of $205,000. Round your answer to the nearest dollar. 4. What if the average price per unit increased to $26.50? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a…
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