consider the following information in your analysis:

2. presents monthly data of units produced and sold and actual costs incurred for 24 months. Using this data calculate the VC per unit and the total monthly FC.
4. For each Costs listed in Exhibit 3 determine if each cost is a manufacturing cost or a non-manufacturing cost.
6. If the Company expects to produce and sell 1500 units per month -

A - If the Selling Price is $100/unit What is the Contribution Margin /unit

B - How many units does the Company need to sell tp Breakeven

C - If the Sells 800 units What is the price it must set to Breakeven

Also consider the following:

2. If the owners set a target profit of $25,000 per month ($300,000) per year to leave their current jobs What price must they set to achieve a profit of $25,000 per month
4. What must the VC per unit be to achieve a profit of $25,000 per month.
6. How many units must the Company sell to achieve a profit of $25,000
8. What must total monthly FC be to achieve a profit of $25,000
10. If the Company makes a deluxe model with a price of $156 and a VC of $100 compared to a price of $100 and VC of $60 for the basic model. With an anticipated sales mix of 60% basic model and 40% deluxe model how many units of each model must the company sell to Breakeven.

Answer rating: 100% (QA)

Before answering the questions lets first categorize the costs in Exhibit 3 and calculate VC per uni... View the full answer