4. What if the average price per unit increased to $25.50? Recalculate the following:aContribution margin per unit. Round your answer to the nearest cent.b.Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.C.Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target ProfitSchylar Pharmaceuticals, Inc., plans to sell 105,000 units of antibiotic at an average price of $24 each in the coming year. Total variable costs equal $856,800. Total fixed costs equal $8,100,000.Required:1. What is the contribution margin per unit? Round your answer to the nearest cent.What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.)2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.3. Calculate the sales revenue needed to achieve a target profit of $240,000. Round your answer to the nearest dollar.4. What if the average price per unit increased to $25.50? Recalculate the following:a. Contribution margin per unit. Round your answer to the nearest cent.b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.c. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

In Marginal costing we get contribution margin by deducting total variable costs per…

Answered: 4. What if the average price per unit…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit
Schylar Pharmaceuticals, Inc., plans to sell 105,000 units of antibiotic at an average price of $24 each in the coming year. Total variable costs equal $856,800. Total fixed costs equal $8,100,000.
Required:
1. What is the contribution margin per unit? Round your answer to the nearest cent.
What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.)
2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.
3. Calculate the sales revenue needed to achieve a target profit of $240,000. Round your answer to the nearest dollar.
4. What if the average price per unit increased to $25.50? Recalculate the following:
a. Contribution margin per unit. Round your answer to the nearest cent.
b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.
c. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.

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