You have been provided with the following information regarding the XYZ company Selling Price Variable manufacturing cost Fixed manufacturing cost $40 $22 per $150,000month Variable selling & $6 administrative costs Fixed selling & administrative costs $120,000 P 1month per _1. What is the expected operating profit for the upcoming year for 30,000 units forecasted? 2. What is the break-even point in dollars? 3. What is the number in units in which profits are equal to zero? 4. what is the contribution margin per unit? 5. what is the contribution margin in dollars? 6. How much in sales dollars is required to generate an operating profit of $30,000? _7. what is the contribution margin ratio?

You have been provided with the following information regarding the XYZ company Selling Price Variable manufacturing cost Fixed manufacturing cost $40 $22 per $150,000month Variable selling & $6 administrative costs Fixed selling & administrative costs $120,000 P 1month per _1. What is the expected operating profit for the upcoming year for 30,000 units forecasted? 2. What is the break-even point in dollars? 3. What is the number in units in which profits are equal to zero? 4. what is the contribution margin per unit? 5. what is the contribution margin in dollars? 6. How much in sales dollars is required to generate an operating profit of $30,000? _7. what is the contribution margin ratio?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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