Bahrain, Inc. sells a single product. The company's most recent income statement is given below. Sales...
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Bahrain, Inc. sells a single product. The company's most recent income statement is given below. Sales (4,000 units) $120,000 Less variable expenses (68,000) Contribution margin 52,000 (40,000) Less fixed expenses Net income $12,000 Instructions: (Answer any five) 2 marks each 1. What is the Contribution margin per unit? 2. If sales are doubled to $240,000, what is the total variable costs? 3. If sales are doubled to $240,000, what is the total fixed costs? 4. If Bahrain is past the breakeven point and 10 more units are sold, profits will increase by 5. Compute how many units must be sold to break even. 6. Compute how many units must be sold to achieve a profit of $20,000. Bahrain, Inc. sells a single product. The company's most recent income statement is given below. Sales (4,000 units) $120,000 Less variable expenses (68,000) Contribution margin 52,000 (40,000) Less fixed expenses Net income $12,000 Instructions: (Answer any five) 2 marks each 1. What is the Contribution margin per unit? 2. If sales are doubled to $240,000, what is the total variable costs? 3. If sales are doubled to $240,000, what is the total fixed costs? 4. If Bahrain is past the breakeven point and 10 more units are sold, profits will increase by 5. Compute how many units must be sold to break even. 6. Compute how many units must be sold to achieve a profit of $20,000.
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SOLUTION 1 CONTRIBUTION MARGIN PER UNIT Total contribution total units sold 52000 4000 units 13 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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