Rooney Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs %24 75 20% $450,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c. Break-even point in dollars Break-even point in units
Rooney Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs %24 75 20% $450,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $45,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units? a. Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c. Break-even point in dollars Break-even point in units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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