Question: Complete the problema4 points Cost Problem Profit: Use the test paper and the back if need to show all work done to answer. 28. PPD
Complete the problema4 points Cost Problem Profit: Use the test paper and the back if need to show all work done to answer. 28. PPD manufactures a product that sells for $40 per unit. PPD incurs a variable $1,400,000 in total fixed costs to produce this product. It is currently selling 92,00 per unit. PPD Incurs a variable cost per unit of 524 and Instructions: Complete each of the following requirements, presenting labeled supporting computations. (a) Compute and label the contribution margin per unit and contribution margin ratio (b) Using the contribution margin per unit compute the break-even point in units. (c) Using the contribution margin ratio, compute the break even point in dollars. (d) Compute the margin of safety and margin of safety ratio. (e) Compute the number of units that must be sold in order to generate net income of $240,000 using the contribution margin per unit. 10 Should Walton Widgets give a commission to its salesmen based on 8% of sales, if it will decrease fixed costs by $300,000 and increase sales volume 10%? Support your answer with labeled computations
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