Based on the following information, complete the problems listed below on the Airwolf Helicopters Company. [In $ Dollars 000] Sales…………………..…………………………….$75,000 Basic Manufacturing Costs……………………$30,000 General & Administrative Expense………..$12,000 # Units shipped…………………………………...15 Solve or answer the following 4 questions. To solve these problems, assume: (1) Basic Manufacturing Costs and General & Administrative Expenses are Fixed Costs; (2) Contribution Margin Percentage = 60%.
Based on the following information, complete the problems listed below on the Airwolf Helicopters Company. [In $ Dollars 000] Sales…………………..…………………………….$75,000 Basic Manufacturing Costs……………………$30,000 General & Administrative Expense………..$12,000 # Units shipped…………………………………...15 Solve or answer the following 4 questions. To solve these problems, assume: (1) Basic Manufacturing Costs and General & Administrative Expenses are Fixed Costs; (2) Contribution Margin Percentage = 60%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Based on the following information, complete the problems listed below on the Airwolf Helicopters Company.
[In $ Dollars 000]
Sales…………………..…………………………….$75,000
Basic
General & Administrative Expense………..$12,000
# Units shipped…………………………………...15
Solve or answer the following 4 questions.
To solve these problems, assume:
(1) Basic Manufacturing Costs and General & Administrative Expenses are Fixed Costs;
(2) Contribution Margin Percentage = 60%.
- Question 1: Break-even level in units?
- Question 2: Break-even sales level?
- Question 3: At the “Break-even sales level” what is the Total cost & break-down between fixed and variable costs?
- Question 4: At the $75,000 sales level what is the Total cost & break-down between fixed and variable costs?
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