Question

In: Accounting

At a level of 23,400 units sold, Lee Corp. has sales of $504,600, a contribution margin...


	At a level of 23,400 units sold, Lee Corp. has sales of $504,600, a contribution margin ratio of 48%, and a profit of $110,000. What is the break-even point in units ? Round your answer to nearest whole number.

Dejounte Corp had a margin of safety of $147,888 last month, with sales revenue of $819,143 and fixed costs of $287,228.

What are break-even sales?

Last month Bryn Company had a $36,352 profit on sales of $202,367. Fixed costs are $66,928 a month.

What sales revenue is needed for Bryn to break even? Do not round intermediate calculations.

Simmons Corp. has a selling price of $15, variable costs of $5 per unit, and fixed costs of $24,973. Contribution margin is $44,660.

How many units did Simmons sell?

Solutions

Expert Solution

Contribution Margin = Sales * Contribution Margin Ratio

= $ 504,600 * 48%

= $ 242,208

Contribution Margin Per Unit = Contribution Margin / Total Units

= $ 242,208 / 23,400 Units

= $ 10.35076923

Fixed Cost = Contribution Margin - Profit

= $ 242,208 - $ 110,000

= $ 132,208

The Break Even Point in Units = Fixed Cost / Contribution Margin Per Unit

= $ 132,208 / $ 10.35076923

= 12,772.77051 Units

Hence the correct answer is 12,773 Units

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Margin of Safety = Actual Sales - Break Even Sales

$ 147,888 = $ 819,143 - Break Even Sales

Break Even Sales = $ 819,143 - $ 147,888

= $ 671,255

Hence the correct answer is $ 671,255

---------

Contribution Margin = Fixed Cost + Profit

= $ 66,928 + $ 36,352

= $ 103,280

Contribution Margin Ratio = Contribution Margin / Sales *100

= $ 103,280 / $ 202,367 * 100

= 51.03598907%

sales revenue is needed for Bryn to break even = Fixed Cost / Contribution Margin Ratio

= $ 66,928 / 51.03598907%

= 131,138.8321

Hence the correct answer is $ 131,138.83

-----------

Contribution Margin = Selling Price Per Unit - Variable Cost Per unit

= $ 15 - $ 5

= $ 10 Per Unit

Contribution Margin = $ 44,660

Units Sold = Contribution Margin / Contribution Margin Per Unit

= $ 44,660 / $ 10

= 4,466 Units

Hence the correct answer is 4,466 Units

ekkarill92 answered 1 year ago

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