Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc company sold 4,000 units, had fixed cost of $5

ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of...

80.2K

Verified Solution

Question

Accounting

ABC company sold 4,000 units, had fixed cost of $500,000 and an operating income of $80,000. Determine (1) Breakeven point in sales dollars (2) Contribution margin and contribution margin ratio is 60% (3) Selling price per unit and variable cost per unit. (4) What is the margin of safety. If the fixed cost was $300,000, what would have been the contribution margin at breakeven point.

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Advance Math
1.2K views

The braking distance for a Krazy-Car traveling at 50 mph is normally distributed with a mean...

Physics
1.2K views

A 0.507-mol sample of an ideal diatomic gas at 393 kPa and 286 K expands quasi-statically until...

General Management
1.2K views

What is the effect of technology (like RFID, WMS, Drones, ) on Honda Canada's inventory and...

Basic Math
1.2K views

The scores on a driver's test are normally distributed with a mean of 100. Find...

Calculus
1.2K views

Let Q t 2 Find a formula for the slope of the secant line over...

Accounting
1.2K views

Show me the steps to solve

Accounting
1.2K views

Trial bal, total, $70,000 Trial bal, total, $70,000

Accounting
1.2K views

Adaitional nrormation tor U4 : 1. Net income is $169,600. 2. Sales on account are...

Accounting
1.2K views

Refer to Campbell Soup Company's statement of Campbell Soup cash flows in Appendix A. Required:...

Accounting
1.2K views

1. From an Internal Control (/C) standpoint, the Asset most susceptible to thef, embezzlement, or...

Accounting
1.2K views

Investment: $300,000 Annual sales revenues $180,000 Annual cash costs = $80,000 4-year useful life, no...

Finance
1.2K views

The market consists of a risk-free asset with return of 5%, and two risky assets:...