A company has a selling price of $20 a unit, variable costs of $10 a...
80.2K
Verified Solution
Link Copied!
Question
Accounting
A company has a selling price of $20 a unit, variable costs of $10 a unit, and fixed costs of $40,000.
A.What is the breakeven point in dollar sales?
B.What quantity must be sold to earn a profit of $60,000?
C.What is the Firms total contribution margin at breakeven?
D.How much revenue is needed to make an aftertax profit of $120,000? Assume a tax rate of 40%.
E.Assume the company sells 12,000 units and the total contribution margin increases by 10%, holding revenues constant, what is the income for the company?
F.Assume we have been selling 14,000 units. What is the net income if there is a 20% decrease in units sold?
G.By how much can fixed cost increase, if the firm increases its sales price by $4 and wants to make a profit of $40,000 by selling 9,000 units?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.