Question

Fixed costs	100,000		Compute:
Selling price per unit	100		Required sales in units to earn desired net income
Variable costs per unit	20		Required sales in $$ to earn desired net income
Desired net income	50,000
Fixed costs	200,000		Compute:
Selling price per unit	500		Break even in units
Variable costs per unit	100		Break even in $$
Desired net income	100,000		Required sales in units to earn desired net income
			Required sales in $$ to earn desired net income
Fixed costs	100,000		Compute:
Contribution margin ratio	40%		Break even in $$
Desired net income	200,000		Required sales in $$ to earn desired net income
Fixed costs	400,000		Compute:
Variable costs as a % of sales	20%		Break even in $$
Desired net income	500,000		Required sales in $$ to earn desired net income
Fixed costs	300,000		Compute:
Variable costs as a % of sales	20%		Break even in $$	500,000
Current net income	500,000		Current sales in $$	1 ,000,000
Desired net income	1,000,000		Required sales in $$ to earn desired net income

Answer 1

Part 1	Desired Net Income	$50,000
	Add:Fixed Costs	$100,000
	Desired Contribution margin	$150,000
	Contribution margin per unit($100-$20)	$80
	Sales unit($150,000/$80)	1875 units
	Required Sales(1875*$100)	$1,875,000
Part 2	Selling Price per unit	$500
	Variable cost per unit	$100
	Contribution margin per unit	$400
	Fixed Costs	$200,000
	Contribution margin Percentage($400/$500)	80%
	Break-even point($200,000/$400)	500 units
	Break-even point in dollars($200,000/80%)	$250,000
	Desired Net Income	$100,000
	Add:Fixed Costs	$200,000
	Desired Contribution margin	$300,000
	Contribution margin per unit	$400
	Sales unit($300,000/$400)	750 units
	Required Sales(750*$500)	$375,000
Part 3	Fixed Costs	$100,000
	Contribution margin Percentage	40%
	Break-even point in dollars($100,000/40%)	$250,000
	Desired Net Income	$200,000
	Add:Fixed Costs	$100,000
	Desired Contribution margin	$300,000
	Contribution margin Percentage	$0
	Required Sales(300,000*40%)	$750,000
Part 4	Fixed Costs	$400,000
	Contribution margin Percentage	20%
	Break-even point in dollars($400,000/20%)	$2,000,000
	Desired Net Income	$500,000
	Add:Fixed Costs	$400,000
	Desired Contribution margin	$900,000
	Contribution margin Percentage	20%
	Required Sales(900,000*20%)	$4,500,000
Part 5	Fixed Costs	$300,000
	Contribution margin Percentage	20%
	Break-even point in dollars($300,000/20%)	$1,500,000
	Current Net Income	$500,000
	Add:Fixed Costs	$300,000
	Current Contribution margin	$800,000
	Current Contribution margin Percentage(100%-20%)	80%
	Current Sales($800,000/80%)	$1,000,000
	Desired Net Income	$1,000,000
	Add:Fixed Costs	$300,000
	Desired Contribution margin	$1,300,000
	Contribution margin Percentage	80%
	Required Sales(1,300,000*80%)	$1,625,000