Ch7 Problem 7-50 - 7-50(45 MINUTES 1 Unit contribution...

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7-50 (45 MINUTES) 1. tonnes 1,100 $450 $495,000 margin on contributi unit costs fixed in tonnes e even volum - Break per tonne $450 1,800 $810,000 margin on contributi Unit = = = = = 2. Projected net income for sales of 2,100 tonnes: Projected contribution margin (2,100 × $450) ...................................... $945,000 Projected fixed costs ............................................................................... 495,000 Projected net income ............................................................................... $450,000 3. Projected net income including foreign order: Variable cost per tonne = $990,000/1,800 = $550 per tonne Sales price per tonne for regular orders = $1,800,000/1,800 = $1,000 per tonne Foreign Order Regular Sales Sales in tonnes ................................................................. 1,500 1,500 Contribution margin per tonne: Foreign order ($900 – $550) ....................................... × $350 Regular sales ($1,000 – $550) .................................... × $450 Total contribution margin ................................................ $525,000 $675,000 Contribution margin on foreign order ....................................................... $ 525,000 Contribution margin on Regular sales ......................................................
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