Chapter 3 Assignment Solution

Chapter 3 Assignment Solution - Contribution margin...

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Chapter 3 Homework handed in Exercise 3-13A a. Contribution margin per unit = $30 - $24 = $6 Break-even point in units = $90,000 ÷ 6 = 15,000 Break-even point in dollars = $30 x 15,000 = $450,000 b. (Fixed cost + Desired profit) ÷ Contribution margin per unit = ($90,000 + $18,000) ÷ 6 = 18,000 units c. The new contribution margin per unit = $29 - $24 = $5 (Fixed cost + Desired profit) ÷ Contribution margin per unit = ($90,000 + $18,000) ÷ 5 = 21,600 units Problem 3-19A a. Contribution margin = Sales price – Variable cost Contribution margin = $32 – ($15 + $9) = $8 Break-even units = Fixed cost
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Unformatted text preview: Contribution margin Break-even units = $200,000 $8.00 Break-even units = 25,000 units Sales in dollars = 25,000 units x $32 per unit = $800,000 b. Required sales = (Fixed cost + Desired profit) Contribution margin Required sales = ($200,000 + $60,000) $8 Required sales = 32,500 units Required sales in dollars = 32,500 x $32 = $1,040,000 c. Y = Fixed cost of salaries Sales = Original fixed cost + Y + Variable cost + Profit $32 x 32,000 units = $200,000+Y +($15 x 32,000)+$60,000 $1,024,000 $200,000 $480,000 $60,000 = Y Y = $284,000...
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This note was uploaded on 11/05/2008 for the course ACC U301 taught by Professor Udihoitash during the Fall '08 term at Northeastern.

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