SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit. How will the break-even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use I for increase and D for decrease. (It is not necessary to compute new break-even points.)
Answer to relevant QuestionsSBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit. Determine the (1) Contribution margin ratio (2) Break-even point in dollars. Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. Compute the level of sales in units needed to produce a target (pretax) income of $118,000. Refer to the information in Exercise. In Exercise HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . $2,160,000 Variable costs ...Sun Co.’s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. (Dollar amounts are in thousands.) Required 1. ...Assume that Samsung’s consumer electronics division is charged with preparing a master budget. Identify the participants—for example, the sales manager for the sales budget—and describe the information each person ...
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