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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Break-Even Units, Contribution Margin Ratio, Margin of Safety
Khumbu 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:
1. Compute the break-even point in units. If required, round your answer to nearest whole value.
units
2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value.
units
3. 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
Transcribed Image Text:Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu 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: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. 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
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