Week 3 Module 3 - e of operating leverage = Contribution...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Revenue 150,000 Less: Variable Cost 79,000 Contribution Margin 71,000 Fixed Cost (Depre & Maint) 40,000 Net Income 31,000 Revenue 400,000 Less: Variable Costs 245,000 Contribution Margin 155,000 Fixed Cost 100,000 Net Income 55,000 Ratio= cont margin/revenue 155,000/400,000 = .39 Total Fixed Costs + Target Profit Contribution Margin per unit = 55000 + 0/selling price 200-variable cost 90 =55000/110 =500 units 55,000 + 0/ (200) – (67+15+5+3) = 55,000/110 =500 units is the break-even amount of printers that need to be sold per month. V F F V X Total Fixed Cost+Target profit/Contribution Margin Ratio (19x 10,000) + 0/(Selling price 90)- (Variable cost 63)/90 selling price 190,000/.3 =$633,333 633,333 Total Fixed + Target Profit/Contribution Margin per unit =((10 + 7) x10,000) = 26,000/(Selling price 70) – (Variable costs 20+9+5+1) = 196,000/35 = 5,600 trucks must be sold per month to meet target profits. 1220
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/03/2011 for the course ACCT 346 taught by Professor Jones during the Spring '11 term at DeVry Kansas City.

Page1 / 22

Week 3 Module 3 - e of operating leverage = Contribution...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online