Ch7 Problem 7-50

Ch7 Problem 7-50 - 7-50 (45...

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Unformatted text preview: 7-50 (45 MINUTES)1.tonnes1,100$450$495,000marginon contributiunit costsfixedin tonneseeven volum-Breakper tonne$4501,800$810,000margin on contributiUnit =====2.Projected net income for sales of 2,100 tonnes:Projected contribution margin (2,100 $450)......................................$945,000Projected fixed costs...............................................................................495,000Projected net income...............................................................................$450,0003.Projected net income including foreign order:Variable cost per tonne = $990,000/1,800 = $550 per tonneSales price per tonne for regular orders = $1,800,000/1,800 = $1,000 per tonneForeign OrderRegular SalesSales in tonnes.................................................................1,5001,500Contribution margin per tonne:Foreign order ($900 $550)..........................................
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Ch7 Problem 7-50 - 7-50 (45...

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