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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