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11.Callin Company sold 10,000 units of a single product last year. Thecontribution margin per unit was $4, and fixed expenses totaled$30,000 for last year. This year fixed expenses are expected toincrease by $6,000, but the contribution margin per unit will remainunchanged at $4. How many units must be sold this year to earn thesame profit as was earned last year?
Unit sales required = (10,000+30,000+6,000)/4=11,500 unitsAnother way of solving the problem:∆Q=∆FE/CM per unit = 6,000/4=1,500Unit sales required = Q +∆Q=10,000+1,500=11,500 units15
12.The following is the operating results of Jenn Corp. last quarter:Sales (10,000 units): $100,000Variable expenses: $50,000Fixed expense: $20,000What is the company’s break-even point in dollar sales?