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Unformatted text preview: Answer: C BE ($) = Fixed Costs Contribution margin ratio where CM ratio = $4.00/$6.00 BE ($) = $12,000 66.67% BE ($) = $18,000 8. (MC 613) Answer: C BE (units) = Fixed Costs Contribution margin per unit CM ratio = CM per unit Sales price per unit .35 = CM per unit $6 CM per unit = $2.10 BE (units) = $42,000 = 20,000 units $2.10 9. (MC 614) Answer: A Units = __Fixed Costs+ Target profit Contribution margin per unit CM ratio = CM per unit Sales price per unit .35 = CM per unit $6 CM per unit = $2.10 Units to reach target profit = $42,000 + $50,000 = 43,810 units $2.10 10. (MC 616) Answer: D Sales Volume ($) to reach aftertax profit = [FC + Aftertax profit/(1 – tax rate)] CM ratio Sales Volume ($) to reach aftertax profit = [$20,000 + 60,000/(1  .40)] .80 Sales Volume ($) to reach aftertax profit = $150,000...
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This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.
 Winter '08
 Buckless
 Managerial Accounting

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