CH6HWex - Homework: Ch 6 (BE 1,4-10; E11-18) BE 6-1 1)...

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Homework: Ch 6 (BE 1,4-10; E11-18) BE 6-1 1) 2) Number of Units Per Unit Number of Units 10100 9900 Sales 353500 $35.00 Sales 346500 Variable Expenses 202000 $20.00 Variable Expenses 198000 Contribution Margin 151500 $15.00 Contribution Margin 148500 Fixed Expenses 135000 Fixed Expenses 135000 Net Operating Income 16500 Net Operating Income 13500 BE 6-4 1) Number of Units Per Unit 59999 Sales 200000 $14.00 Variable Expenses 120000 $2.40 Contribution Margin 80000 11.6 Fixed Expenses 65000 80000/20000=40% Net Operating Income 15000 2) Change in total sales: $1000 x 40% = $400 BE 6-5 1) Per Unit Percent of Sales
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Selling Price $90 100% Variable Expenses $63 70% Contribution Margin $27 30% CM Ratio = $27 / $90 = .3 Change in net income: $2300 BE 6-6 1) 2) Unit sales to earn a target profit of $10,000: Unit sales to earn a target profit of $15,000: Unit CM = 120 - 80 = 40 Unit CM = 120 - 80 = 40 $10,000 = $40 x Q - $50,000 ($15,000 + $50,000) / $40 = 1625 $40 x Q = $10,000 + $50,000 Q = ($10,000 + $50,000) / $40
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CH6HWex - Homework: Ch 6 (BE 1,4-10; E11-18) BE 6-1 1)...

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