Shawn, Inc., sells a single product. The company's most recent income statement isgiven below.Sales (4,000 units)Less variable expensesContribution marginLess fixed expenses$120,000(68,000)52,000(40,000)$ 12.000Net incomeRequired:Contribution margin per unit isb.а.per unitIf sales are doubled to $240,000,total variable costs will equalIf sales are doubled to $240,000,total fixed costs will equald.С.$2$If 10 more units are sold, profits will increase byCompute how many units must be sold to break even. #f.е.Compute how many units must be soldto achieve profits of $20,000.%24%23

Name: Shawn, Inc., sells a single product. The company's most recent income
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Description: Shawn, Inc., sells a single product. The company's most recent income statement isgiven below.Sales (4,000 units)Less variable expensesContribution marginLess fixed expenses$120,000(68,000)52,000(40,000)$ 12.000Net incomeRequired:Contribution margin

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Shawn, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses $120,000 (68,000) 52,000 (40,000) $ 12.000 Net income Required: Contribution margin per unit is b. a. per unit If sales are doubled to $240,000, total variable costs will equal If sales are doubled to $240,000, total fixed costs will equal d. $ $ If 10 more units are sold, profits will increase by Compute how many units must be sold to break even. # f. е. Compute how many units must be sold to achieve profits of $20,000. # C.

Shawn, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses $120,000 (68,000) 52,000 (40,000) $ 12.000 Net income Required: Contribution margin per unit is b. a. per unit If sales are doubled to $240,000, total variable costs will equal If sales are doubled to $240,000, total fixed costs will equal d. $ $ If 10 more units are sold, profits will increase by Compute how many units must be sold to break even. # f. е. Compute how many units must be sold to achieve profits of $20,000. # C.

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 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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