Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. paulsen company sells only one product. the regula

Paulsen Company sells only one product. The regular selling price is $50. Variable costs are...

80.2K

Verified Solution

Question

Accounting

Paulsen Company sells only one product. The regular selling price is $50. Variable costs are 70% of this selling price, and fixed costs are $7,500 per month.

Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision.

1. Refer to the above data. At the original selling price of $50 per unit, what is the contribution margin ratio?

2. Refer to the above data. At the original selling price of $50 per unit, how many units must Paulsen sell to break even?

3. Refer to the above data. At the original selling price of $50 per unit, what dollar volume of sales per month is required for Paulsen to earn a monthly operating income of $5,000?

4. Refer to the above data. At the increased selling price of $55 per unit, what is the contribution margin ratio?

5. Refer to the above data. At the increased selling price of $55 per unit, what dollar volume of sales per month is required to break-even?

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

Biology
1.2K views

A patient asks you to special order an OTC item.What should you say to the...

Physics
1.2K views

2 Consider the following two statements a The binding energy per nucleon is practically independent...

Physics
1.2K views

85 Two lenses are placed in contact with each other and the focal length of...

Basic Math
1.2K views

onvert 3 radians to degrees Approximate to the nearest thousandth

Basic Math
1.2K views

The value of a laptop t years after it is purchased is given by the...

Calculus
1.2K views

Find the quotient Do not round 4 1 38 1000

Accounting
1.2K views

I need help with the following depreciation: Commercial building 39 years depreciation straight line for...

Accounting
1.2K views

Freestone Company reports the following income statement accounts for the year ended December 31st. Categorize...

Accounting
1.2K views

Determination of Acquisition Cost On January 1, 2012, Emming Corporation purchased some machinery. The machinery...

Accounting
1.2K views

PLEASE ANSWER ALL OF THE REQUIREMENTS WITH EXPLANATION FOR A THUMBS UP! Weinsterin,...

Accounting
1.2K views

Marigold Corp. issued common stock for proceeds of $435000 during 2017. The company paid dividends...

Accounting
1.2K views

is complete and correct. Net Delivered Cost of Purchases Case A Case B Purchases $93,415selected...