Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500.NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx download or Chapter03 CM Income Statement BE.xlsx download - to help complete this problem. The following names are to be considered when completing this problem:Operating IncomeVariable CostsSalesFixed Costs per UnitSelling Price per UnitVariable Cost per UnitContribution MarginFixed CostsOperating Loss How many trees will Elmwood need to sell in order to realize a target profit of $45,000? . Use commas as needed (i.e. 1,234).What dollar sales will Elmwood need to generate in order to realize a target profit of $45,000? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).Construct a contribution margin income statement for the month of December that reflects $150,000 in sales revenue for Elmwood. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).ElmwoodPinecone Contribution MarginIncome Statement For the Monthof December ______________________________________________ _____________________________________________ ________________________________________________ __________________________________________________ ____________________________________________________

Units that needs to be sold for target profit should earn contribution margin equal to total fixed…

Answered: Elmwood Pinecone sells fake Christmas…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...

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Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500.

NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx download or Chapter03 CM Income Statement BE.xlsx download - to help complete this problem.

The following names are to be considered when completing this problem:

Operating Income	Variable Costs	Sales
Fixed Costs per Unit	Selling Price per Unit	Variable Cost per Unit
Contribution Margin	Fixed Costs	Operating Loss

How many trees will Elmwood need to sell in order to realize a target profit of $45,000? . Use commas as needed (i.e. 1,234).
What dollar sales will Elmwood need to generate in order to realize a target profit of $45,000? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).

Construct a contribution margin income statement for the month of December that reflects $150,000 in sales revenue for Elmwood. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).

Elmwood	Pinecone
Contribution Margin	Income Statement
For the Month	of December
____________________	__________________________
____________________	_________________________
_____________________	___________________________
______________________	____________________________
_______________________	_____________________________

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