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Resource table:

Resource table:

Sales price (per unit) $90

Variable cost (per unit) $63

Fixed cost $810,000

Desired pretax profit $135,000

Tax rate 35%


Breakeven point in units =

Breakeven point in dollars =


then,


Determine the impact of the change identified in the first column and enter the impact on the second column


(Options are : Increase, decrease, no impact)


  1. Impact on the contribution margin if fixed cost increases by $40,000 =
  2. Impact on the contribution margin ratio if per unit sales and variable cost both decrease by $10 =
  3. Impact on total variable costs if the desired pretax profit increases by $50,000 =
  4. Impact on Breakeven in units if tax rate decreases by 30% =


Resource table:

Sales price (per unit) $90

Variable cost (per unit) $63

Fixed cost $810,000

Desired pretax profit $135,000

Tax rate 35%

Top Answer

Impact on the contribution margin if fixed cost increases by $40,000 = no impact Impact on the... View the full answer

3 comments
  • Break even point in Units =Fixed Cot/Contribution per unit =810000/(90-63) =30000 Units , Breakeven point in dollars 30000*90=2700000
    • Whitswan
    • Apr 02, 2018 at 12:55am
  • Sweet! My answers match with yours! Thank you very much!
    • helgamartell
    • Apr 02, 2018 at 1:02am
  • please rate my answer
    • Whitswan
    • Apr 02, 2018 at 1:04am

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Other Answers

Break even point=Fixed Costs / Sales price per unit - variable cost per unit Contribution per unit= Sales price per unit -... View the full answer

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