60.1K

Verified Solution

Link Copied!

ratio Problem 1: (10 points) Sales per unit = $250 Variable Cost per unit = $150 Units = 350 1. Calculate Contribution Margin Per Unit (2 points) 2. Calculate Contribution Margin (CM) Ratio Per Unit (3 points) 3. Calculate Total Contribution Margin (CM) Dollars (5 points) Problem 2: (5 points) Sales = $5,000,000 CM Ratio = 0.40 Fixed cost = $1,600,000 1. Calculate Profit. Problem 3: (5 points) A company has budgeted sales of $200,000, a profit of $60,000 and fixed expenses of $40,000. 1. Calculate the contribution margin ratio. Review Problem: Break-even point Problem 4: (15 points) Voltar Company manufactures and sells a telephone answering machine. The company's contribution format income statement for the most recent year is given below: Total Per unit Pct. of sales (Ratios) $1,200,000 Sales 100% $60 Less variable 900,000 45 expenses ?% 1. Calculate the contrIDULIULU I Review Problem: Break-even point Problem 4: (15 points) Voltar Company manufactures and sells a telephone answering machine. The company's contribution format income statement for the most recent year is given below: Total Per unit Pct. of sales (Ratios) Sales $1,200,000 $60 100% Less variable 900,000 45 ?% expenses 300,000 15 ?% Contribution margin Less fixed expenses 240,000 Net operating $60,000 income ====== 1. What is the Contribution Margin (CM) Ratio (or percent of sales)? (5 points) 2. Calculate break-even point both in total units and total sales dollars. (10 points) Problem 5: (15 points) Management is anxious to improve the company's profit performance. Assume that next year management wants the company to earn a minimum profit of $90,000. 1. How many units will have to be sold to meet the target profit figure

Answer & Explanation Solved by verified expert

See Answer