Question
In: Accounting
Price Variable Cost Fixed Cost Target Profit 10 5 25,000 15,000 What is the target profit...
| Price | Variable Cost | Fixed Cost | Target Profit |
| 10 | 5 | 25,000 | 15,000 |
What is the target profit Quantity?
| Price | Variable Cost | Fixed Cost | Target Profit |
| 100 | 70 | 3,000,000 | 1,500,000 |
What is the Break Even Quantity?
| Price | Variable Cost | Fixed Cost | Target Profit |
| 100 | 70 | 3,000,000 | 1,500,000 |
What is the contribution margin ratio (decimal format)?
| Price | Variable Cost | Fixed Cost | Target Profit |
| 10 | 5 | 25,000 | 15,000 |
What is the Break Even Quantity?
| Price | Variable Cost | Fixed Cost | Target Profit |
| 80 | 65 | 450,000 | 150,000 |
What is the Target Profit Sales ($)?
| Price | Variable Cost | Fixed Cost | Target Profit |
| 80 | 65 | 450,000 | 150,000 |
What is the Targe Profit Quantity?
Solutions
Expert Solution
Answer 1:
Desired sales (in units) = (Fixed Cost + Profit)/ Contribution per unit
= (25,000 + 15,000) / (10 (-) 5)
= 8,000 units
Answer 2:
Break even Point (in units) = Fixed Cost / Contribution per unit
= 3,000,000 / (100-70)
= 100,000 units
Answer 3:
Contribution ratio = Contribution / Sales * 100
= (100-70) / 100
= 30%
Answer 4:
Break even Point (in units) = Fixed Cost / Contribution per unit
= 25,000 / (10-5)
= 5,000 units
Answer 5:
Desired sales (in $) = (Fixed Cost + Profit)/ Contribution ratio
= (450,000 + 150,000) / 18.75%
= $ 3,200,000
Answer 6:
Desired sales (in units) = (Fixed Cost + Profit)/ Contribution per unit
= (450,000 + 150,000) / (80-65)
= 600,000 / 15
= 40,000 units
In case of any doubt or clarification, feel free to come back via comments.
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