11 callin company sold 10000 units of a single

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11. Callin Company sold 10,000 units of a single product last year. The contribution margin per unit was $4, and fixed expenses totaled $30,000 for last year. This year fixed expenses are expected to increase by $6,000, but the contribution margin per unit will remain unchanged at $4. How many units must be sold this year to earn the same profit as was earned last year?
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Unit sales required = (10,000+30,000+6,000)/4=11,500 units Another way of solving the problem: Q= FE/CM per unit = 6,000/4=1,500 Unit sales required = Q + Q=10,000+1,500=11,500 units 15
12. The following is the operating results of Jenn Corp. last quarter: Sales (10,000 units): $100,000 Variable expenses: $50,000 Fixed expense: $20,000 What is the company’s break-even point in dollar sales?
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