ATG212Chapter6Solutions

ATG212Chapter6Solutions - Brief Exercise 6-6 (15 minutes)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Brief Exercise 6-6  (15 minutes) 1. The equation method yields the required unit sales, Q, as follows: Sales = Variable expenses + Fixed expenses + Profits $140Q = $60Q + $40,000 + $6,000 $80Q = $46,000 Q = $46,000 ÷ $80 per unit Q = 575 units 2. The contribution margin yields the required unit sales as follows: Fixed expenses + Target profit Units sold to attain   =  the target profit Unit contribution margin $40,000 + $8,000 $80 per unit $48,000 $80 per unit = 600 units
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Brief Exercise 6-9  (30 minutes) 1. The overall contribution margin ratio can be computed as follows: Total contribution margin Overall CM ratio =  Total sales $120,000  = 80% $150,000 2. The overall break-even point in sales dollars can be computed as  follows: Total fixed expenses Overall break-even =  Overall CM ratio $90,000   =   = $112,500 80% 3. To construct the required income statement, we must first  determine the relative sales mix for the two products: Predator Runway Total Original dollar sales. ...... $100,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

ATG212Chapter6Solutions - Brief Exercise 6-6 (15 minutes)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online