Swifty Corporation produces flash drives for computers, which it sells for $15 each, Each flash drive costs $9 of variable costs to make.During April, 1000 drives were sold. Fied costs for April were $1000. How much is the contribution margin ratio?O 45%O 73%O 27%O 40%

Solution: Selling price per unit = $15 Variable cost per unit = $9 Contribution margin per unit =…

Swifty Corporation produces flash drives for computers, which it sells for $15 each Each flash drive costs $9of variable costs to m During April, 1000 drives were sold. Fised costs for April were $1000. How much is the contribution margin ratio O 45% O 73% O 27% O 40%

Swifty Corporation produces flash drives for computers, which it sells for $15 each Each flash drive costs $9of variable costs to m During April, 1000 drives were sold. Fised costs for April were $1000. How much is the contribution margin ratio O 45% O 73% O 27% O 40%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2PA: A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for...

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Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
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Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
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