Break-Even Units, Contribution Margin Ratio, Margin of SafetyKhumbu Company's projected profit for the coming year is as follows:TotalPer UnitSales$3,407,250$38.50Total variable cost1,431,04516.17Contribution margin$ 1,976,205$ 22.33Total fixed cost1,402,424Operating income$ 573,781Required:1. Compute the break-even point in units. If required, round your answer to nearest whole value.units2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value.units3. Compute the contribution margin ratio. If required, round your answer to nearest whole number.%Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected.4. For the projected level of sales, compute the margin of safety in units.units

reak-Even Units, Contribution Margin Ratio, Margin of Safety thumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,407,250 $38.50 Total variable cost 1,431,045 16.17 Contribution margin $ 1,976,205 $ 22.33 Total fixed cost 1,402,424 Operating income $ 573,781 Required: .. Compute the break-even point in units. If required, round your answer to nearest whole value. units . How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units . Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Ising the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. . For the projected level of sales, compute the margin of safety in units. units

reak-Even Units, Contribution Margin Ratio, Margin of Safety thumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,407,250 $38.50 Total variable cost 1,431,045 16.17 Contribution margin $ 1,976,205 $ 22.33 Total fixed cost 1,402,424 Operating income $ 573,781 Required: .. Compute the break-even point in units. If required, round your answer to nearest whole value. units . How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units . Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Ising the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. . For the projected level of sales, compute the margin of safety in units. units

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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