Marlin Motors sells a single product with a selling price of $400 with variable costs per unit
Question:
Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160.
The company’s monthly fixed expenses are $36,000.
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 November when they will sell 130 units.
D. How many units will Marlin need to sell in order to realize a target profit of $48,000?
E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,000?
F. Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
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Step by Step Answer:
A To calculate the companys breakeven point in units we divide the total fixed expenses by the contribution margin per unit Breakeven point in units Total fixed expenses Contribution margin per unit C...View the full answer
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Related Book For 
Principles Of Accounting Volume 2 Managerial Accounting
ISBN: 9780357364802
1st Edition
Authors: OpenStax
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