I just posted this question about 20 mins ago and the person who answered the qu
ID: 2423696 • Letter: I
Question
I just posted this question about 20 mins ago and the person who answered the question didn't answer the whole question. can you please answer the whole question a-k and brake it down the answer. Assume that the Unit Price on Firm X's product is $ 20 Per Unit. The Unit Variable Cost is $ 10 Per Unit, and the Fixed Cost equals $ 50,000. Based upon this scenario: a. Determine the B/E Point in number of units b. Determine the B/E Point in Sales Dollars c. Determine the B/E Point in Sales Dollars via another computation vs. the one you used in Part b. d. Confirm your answers in a - c above by presenting a Managerial Income Statement e. Determine the # of units which must be sold to generate a $ 50,000 Operating Profit f. Determine the Sales Dollars that must be generated to achieve the $ 50,000 Operating Profit g. Via another computation vs. the one used in Part f, determine the Sales Dollars required to meet the $ 50,000 Operating Profit h. Confirm your answers in e - g above by presenting a Managerial Income Statement i. Determine the Average Total Cost (ATC), Average Variable Cost (AVC), and Average Fixed Cost (AFC) for the B/E Point. j Determine the ATC, AVC, and AFC for the # of units computed in Part e. k. Determine the Marginal Cost Per Unit for between the B/E Point and the # of units computed in Part e.
Explanation / Answer
unit price 20 Variable cost 10 contribution margin 10 Fixed cost 50000 BE in units 5000 BE in sales dollar 100000 Operating profit required 50000 Total(profit+Fixed cost) 100000 no of units to be sold for 50000 profit 10000 Sales dollar 200000