Chapter 6 InClass Exercises

Chapter 6 InClass - CVP In-Class Exercise Gamecock Corporation had the following sales and cost data Sales Volume Sales Revenue Variable Expenses

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CVP In-Class Exercise Gamecock Corporation had the following sales and cost data. Sales Volume 20,000 units Sales Revenue $600,000 Variable Expenses $390,000 Fixed Expenses $150,000 Compute the follow: 1. Total contribution margin: 2. Contribution margin ratio: 3. Unit contribution margin: 4. The increase in profit that will result from a $60,000 increase in sales price: 5. The increase in profit from a 1,200 increase in sales units:
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Break-Even and Target Profit In-Class Exercise JHF Corporation produces a product that sells for $150 per unit. The variable expenses to make this product are $70 per unit. Fixed expenses total $300,000 per year. JHF is currently selling 8,000 units each year. 1. Calculate the number of units that JHF must sell to break-even. 2. Calculate the number of units that JHF must sell to make $200,000 profit. 3. JHF is considering the purchase of equipment that will automate its production process. This equipment will increase JHF’s fixed expenses to $400,000 per year, but the automated process will cause the variable
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This note was uploaded on 02/14/2011 for the course ACCT 226 taught by Professor Smith during the Spring '10 term at South Carolina.

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Chapter 6 InClass - CVP In-Class Exercise Gamecock Corporation had the following sales and cost data Sales Volume Sales Revenue Variable Expenses

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