Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per month. What amount of sales (in dollars) must Summer Company have to earn an operating income of $7,000? If each unit sells for $30, how many units must be sold to achieve the desired operating income?
Answer to relevant QuestionsCompute the missing amounts for the following table. Organic, Inc. has collected the following data for November (there are no beginning inventories): Units produced and sold ......... 300 units Sales price ................ $ 275 per unit Direct materials .............. ...Simpson Company sells two products, Alpha and Omega, with a sales mix of 30% and 70%, respectively. Alpha has a contribution margin per unit of $24, and Omega has a contribution margin per unit of $31. The company sold 800 ...Felicity Pool Cleaning Service provides pool cleaning services to residential customers. The company has three employees, each assigned to specific customers. The company considers each employee’s territory as a business ...Yada Company budgeted direct materials purchases of $192,340 in January and $138,260 in February. Assume Yada pays for direct materials purchases 30% in the month of purchase and 70% in the month after purchase. The Accounts ...
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