Walton Company incurs annual fixed costs of $52,925. Variable costs for Walton's product are $26.00 per unit, and the sales price is $40.00 per unit. Walton desires to earn an annual profit of $61,000. Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. Required (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units

Walton Company incurs annual fixed costs of $52,925. Variable costs for Walton's product are $26.00 per unit, and the sales price is $40.00 per unit. Walton desires to earn an annual profit of $61,000. Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. Required (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume 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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Munoz Company incurs annual fixed costs of $125,220. Variable costs for Munoz’s product are $28.80 per unit, and the sales price is $45.00 per unit. Munoz desires to earn an annual profit of $60,000. Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Perez Company incurs annual fixed costs of $120,540. Variable costs for Perez’s product are $27.90 per unit, and the sales price is $45.00 per unit. Perez desires to earn an annual profit of $63,000. RequiredUse the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. Do not round answer to the nearest whole number
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Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $100 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $460,000, and fixed selling and administrative costs are $195,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach. a. Break-even point in units a. Break-even point in dollars b. Contribution margin per unit b. Break-even point in units b. Break-even point…
Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $20. The sharpeners are sold for $30 each. Fixed operating expenses amount to $40,000. a. Determine the break-even point in units and sales dollars. b-1. Determine the sales volume in units and dollars that is required to attain a profit of $12,000. b-2. Prepare an income statement using the contribution margin format to verify your answer. c. Determine the margin of safety between sales required to attain a profit of $12,000 and break-even sales.
Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)