unit contribution margin. numb
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![**Exercise 20.3 (Algo) Computing Required Sales Volume (LO20-4, LO20-5)**
The following is information concerning a product manufactured by Ames Brothers:
- **Sales price per unit:** $78
- **Variable cost per unit:** $43
- **Total fixed manufacturing and operating costs (per month):** $430,000
Tasks:
a. Determine the unit contribution margin.
b. Determine the number of units that must be sold each month to break even. *(Round your answer to the nearest whole number.)*
c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. *(Round your answer to the nearest whole number.)*
**Table for calculations:**
| a. Unit contribution margin | [ ] |
| b. Break-even units | [ ] |
| c. Target sales in units | [ ] |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbed57b3f-4985-4c44-a1d3-1432756d6b0e%2Fe5e4a40e-eb62-4c94-a626-fe5a6407f71e%2Fbyz0ltl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Exercise 20.3 (Algo) Computing Required Sales Volume (LO20-4, LO20-5)**
The following is information concerning a product manufactured by Ames Brothers:
- **Sales price per unit:** $78
- **Variable cost per unit:** $43
- **Total fixed manufacturing and operating costs (per month):** $430,000
Tasks:
a. Determine the unit contribution margin.
b. Determine the number of units that must be sold each month to break even. *(Round your answer to the nearest whole number.)*
c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. *(Round your answer to the nearest whole number.)*
**Table for calculations:**
| a. Unit contribution margin | [ ] |
| b. Break-even units | [ ] |
| c. Target sales in units | [ ] |
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