Answered: Variable costs as a percentage of sales…

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. What is the number of sales required to achieve a $60,000 net income?

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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Provide this question solution general accounting

Variable costs as a percentage of sales for
Lemon Inc. are 80%, current sales are
$600,000, and fixed costs are $130,000. What
is the number of sales required to achieve a
$60,000 net income?

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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Variable costs as a percentage of sales for lemon need help
If the contribution margin ratio solve this question
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Quick answer of this accounting questions
The following information is for Corp: Selling price $60 per unit Variable costs $40 per unit Total fixed costs $125,000 If targeted operating income is $50,000 , then targeted sales revenue is how much?