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  1. business
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  3. abc corporation has fixed expenses of $185,000. ea

ABC Corporation has fixed expenses of $185,000. Each product they sell sells for $18. a)...

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Accounting

ABC Corporation has fixed expenses of $185,000. Each product they sell sells for $18.

a) Assuming variable costs are $12 use the income statement equation approach to find the break-even sales in units.

b) Assuming variable costs are $10 use the contribution margin shortcut approach to find the # of units ABC Corporation needs to sell to obtain an operating profit of $75,000

. c) Assuming a contribution margin % of 37.5% compute ABC Corporations operating profit if they sell 32,500 units.

d) Assuming a contribution margin of 55% use contribution margin ratio shortcut to calculate the break-even point in dollars.

e) Assuming variable costs of $10 a unit, prepare a CVP graph. Label the axes, sales revenue line, fixed expense line, total expense operating loss area, operating income area, and the break even point for the relevant range of 0 to 50,000 units.

f) What is the Y co-ordinate if sales are 35,000? Label this point on the sales revenue line, fixed expense line and total expense line.

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