{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch. 7 solutions

# Ch. 7 solutions - BUSI0027 MAI Solutions to Ch.7 assigned...

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

BUSI0027 MAI Solutions to Ch.7 assigned questions E7-35 1. Sales price per unit ............................................. \$20.00 Variable cost per unit ......................................... \$15.00 Contribution margin per unit ............................. \$ 5.00 Contribution margin ratio = \$5.00 = .25 \$20.00 = 25% Sales Revenue (120,000 × \$20.00)……………… \$ 240,000 Less: Variable expenses (120,000 × \$15.00)… <1,800,000 > Contribution margin…………………………….. \$ 600,000 2. Sales volume (units)……………………………… 150,000 Unit contribution margin………………………… x \$5.00 Contribution margin……………………………… \$750,000 Less: Fixed expenses…………………………… <468,000 > Operating income…………………………………. \$282,000 3. Sales revenue……………………………………… \$4,000,000 Contribution margin ratio……………………….. x 25 % Contribution margin……………………………… \$1,000,000 Less: fixed expenses……………………………. <468,000 > Operating income…………………………………. \$ 532,000 4. Sales in units = \$468,000 = 93,600 \$5.00 units Sales in dollars = \$468,000 = \$1,872,000 25% 5. \$468,000 + \$260,000 = 145,600 units \$5.00

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

View Full Document
6. Original contribution margin per unit .................. \$5.00 Less: Increase in Direct labor cost per unit (\$5.00 x 10%) .......................................................... \$0.50 New contribution margin per unit………………... \$4.50 Original fixed expenses……………………………. \$468,000 Plus: Increase in fixed expenses……………….. 22,500 New fixed expenses………………………………… \$490,500 New breakeven in units = \$490,500 = 109,000 \$4.50 Units 7. Contribution margin (from part 1)………………... \$600,000 Less: Fixed expenses……………………………...
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 7

Ch. 7 solutions - BUSI0027 MAI Solutions to Ch.7 assigned...

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

View Full Document
Ask a homework question - tutors are online