Sargent, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000. A. What is the company’s break-even point in units? B. What is the company’s break-even point in dollars? C. Prepare a contribution margin income statement for the month of October when they will sell 10,000 units.
Sargent, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000. A. What is the company’s break-even point in units? B. What is the company’s break-even point in dollars? C. Prepare a contribution margin income statement for the month of October when they will sell 10,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| xlsx 3.5 | Sargent, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000. | |||||||||||||
| A. What is the company’s break-even point in units? | ||||||||||||||
| B. What is the company’s break-even point in dollars? | ||||||||||||||
| C. Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. | ||||||||||||||
| D. How many units will Sargent need to sell in order to realize a target profit of $300,000? | ||||||||||||||
| E. What dollar sales will Sargent need to generate in order to realize a target profit of $300,000? | ||||||||||||||
| F. Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Sargent, Inc. | ||||||||||||||
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