Sargent, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000.       A.   What is the company’s break-even point in units?                      B.    What is the company’s break-even point in dollars?                      C.    Prepare a contribution margin income statement for the month of October when they will sell 10,000 units.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
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Chapter16: Financial Planning And Control
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  xlsx 3.5 Sargent, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The company’s monthly fixed expenses are $180,000.  
    A.   What is the company’s break-even point in units?                 
    B.    What is the company’s break-even point in dollars?                 
    C.    Prepare a contribution margin income statement for the month of October when they will sell 10,000 units.         
    D.   How many units will Sargent need to sell in order to realize a target profit of $300,000?           
    E.    What dollar sales will Sargent need to generate in order to realize a target profit of $300,000?           
    F.    Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Sargent, Inc.    
                             
                             
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