ACCT 225 - Assignment 5-3

ACCT 225 - Assignment 5-3 - 464000-282850= 181150...

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Problem 6-20A #1 $40 $24 16 Contribution Margin 16/40=.40 150000/.40=375000 Break even Sales 150000/16=9375 Break Even Units #3 9200x40=368000 Sales 9200x24=220800 Var Contribution Margin 147200 Fixed 150000 Loss -2800 #4 Sales 40 100% Variable 25 62.50% 15 Contribution Margin 15/40=37.5% 150000/37.5=400000 Break Even Sales 150000/15=10000 Break Even Units #5 11600x$40=464000 Sales 11600-9375x2=4450 11600x24=278400 278400+4450=282850 Variable
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Unformatted text preview: 464000-282850= 181150 Contribution Margin 150000 Fixed 31150 Net Income #6 40 Sales 14 Variable 26/40=65% 26 Contribution Margin 150000/.65=300000 Break Even Sales 150000/26=7500 Break Even Units Yes. I would recommend the change. The costs are less to break even. The profits ts will be maximized. I think we need the lowest break even possible in this situation....
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ACCT 225 - Assignment 5-3 - 464000-282850= 181150...

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