Student Name Beotion Numbar 6 Data Bedtion: Fbed Varlable 8 Production oosts: 9
ID: 341967 • Letter: S
Question
Student Name Beotion Numbar 6 Data Bedtion: Fbed Varlable 8 Production oosts: 9 Drootmatortals 10 Draot labor 11 Factory ovarhead 12 Salling expen cea: 13 Sales calaries & commisalons 14 Advartishg 15 Misoallaneous soling expanse 16 General axpen s: 17 orb·salaries 18 Sup plibs 19 Misoallianoous goneral axpanse 3225,000 0.75 47.500 15,000 3 505,000 $11.00 318.00 24 Seling preeper unit 26 Expa cted unit sales 28 Anae r Section: 30 Contribut ion ma rgin per unt 31 Contribut on ma rgin ratio 22 Unit sales at break-gvenpoint 33 Dollar breakiven point 34 Evected net in come FORMULA2 FORMULA FORMULAL FORMULASExplanation / Answer
Answer a.
Contribution Margin per unit = Selling Price per unit - Variable Expenses per unit
Contribution Margin per unit = $16.00 - $11.00
Contribution Margin per unit = $5.00
Answer b.
Contribution Margin Ratio = Contribution Margin per unit / Selling Price per unit
Contribution Margin Ratio = $5.00 / $16.00
Contribution Margin Ratio = 31.25%
Answer c.
Unit sales at break-even point = Fixed Expenses / Contribution Margin per unit
Unit sales at break-even point = $505,000 / $5.00
Unit sales at break-even point = 101,000
Answer d.
Dollar sales at break-even point = Fixed Expenses / Contribution Margin Ratio
Dollar sales at break-even point = $505,000 / 0.3125
Dollar sales at break-even point = $1,616,000
Answer e.
Expected Net Income = Expected Sales * Contribution Margin per unit - Fixed Expenses
Expected Net Income = 120,000 * $5.00 - $505,000
Expected Net Income = $95,000