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

Info icon This 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 Total Fixed Cost + Target Profit/ Contribution margin Ratio = (( 17.5 + 22) x 10,000 + 400,000/(Selling price 200) – (Variable costs 60+11+13+10) = 395,000 + 400,000/ (106/200 selling price) =795,000/.53 = 1,500,000 is needed in monthly revenues to meet its target profit of 400,000 per month.
Image of page 1

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern