Chapter_3HWKSol

Chapter_3HWKSol - Exercise 3-3A Contribution margin = Sales...

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Exercise 3-3A Contribution margin = Sales – Variable cost = $10 – $6=$4 Contribution margin ratio = Contribution margin ÷ Sales Contribution margin ratio = $4 ÷ $10.00 = 40% Sales in dollars = (Fixed cost + Desired profit) ÷ Contribution margin ratio Required sales = ($90,000 + $30,000) ÷ .40 Sales in dollars = $300,000 Sales in units = $300,000 ÷ $10.00 = 30,000 Units Exercise 3-7A a. Sales price per unit $200 Variable cost per unit (110) Contribution margin per unit $90 b. Break-even in units = Fixed cost ÷ Contribution margin Break-even in units = $630,000 ÷ $90 Break-even in units = 7,000 c. Required sales in units = (Fixed cost + Profit) ÷ Contribution margin Required sales in units = ($630,000 + $270,000) ÷ $90 Required sales in units = 10,000 Exercise 3-16A a. Weighted-average contribution margin Product Panorama $40 x .75 = $ 30 Product Vista $60 x .25 = 15 Weighted-average contribution margin = $45 Break-even = Fixed cost ÷ Weighted-average contribution margin Break-even = $90,000
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This homework help was uploaded on 04/22/2008 for the course ACCT 2302 taught by Professor All during the Spring '08 term at Texas Tech.

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Chapter_3HWKSol - Exercise 3-3A Contribution margin = Sales...

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