View the step-by-step solution to:

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%

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

• 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
• Whitswan
• Apr 02, 2018 at 1:04am

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