Question

hello

BioPharm corporation manufactures aspirin (a pharmaceutical product). The following are information are related to the production and selling of 500,000 units of aspirin: Amount in $ Revenue 30,000,000 Cost of goods sold 51% of revenue Marketing cost ?? Operating income 6,700,000 You also Knew the following information : - The company has only two costs which are: Cost of goods sold and marketing costs - Only $3,680,000 of Cost of goods sold are Variable - Marketing cost represent the amount the company pays to its salespeople - The company pays to its salespeople fixed salaries of 2,300,000 and commission of 19% of revenues. Based on the previous information , Answer the following : 1. calculate contribution margin 2. calculate Contribution margin percentage 3. calculate contribution margin per unit 4. using excel represent the C-V-P graph and identify based on it the BEP, when the company losses and when it will have profits.

i need solve that as sooon as

tonight

plz jelpe me and answer of all question

#mangeiral accounting

Answer 1

(1) Variable Cost of Commission=Revenue*Percentage of Variable Cost
=$30,000,000*19%
=$5,700,000

Total Variable Cost= Variable Cost+Variable cost of Commission
=$3,680,000+$5,700,000
=$9,380,000

  Contribution Margin=Net Sales - Total Variable Cost
=$30,000,000 - $9,380,000
=$20,620,000

(2) Contribution Margin Percentage= (Sales-Variable Cost)/Sales
=($30,000,000-$9,380,000)/$30,000,000
=68.73%

(3) Contribution Margin Per Unit=Contribution Margin/Units Produced
=$20,620,000/500,000
=$41.24

(4) Total Cost=Variable Cost+Fixed Cost
=$9,380,000+$2,300,000
=$11,680,000

GRAPH