Question: eBook Question Content Area Contribution Margin Ratio, Break - Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc., plans to sell 1 4
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Contribution Margin Ratio, BreakEven Sales Revenue, Sales Revenue for Target Profit
Schylar Pharmaceuticals, Inc., plans to sell units of antibiotic at an average price of $ each in the coming year. Total variable costs equal $ Total fixed costs equal $
Required:
What is the contribution margin per unit? Round your answer to the nearest cent.
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What is the contribution margin ratio? Round your answer to two decimal places. Express as a decimalbased answer rather than a whole percent amount.
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Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.
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Calculate the sales revenue needed to achieve a target profit of $ Round your answer to the nearest dollar.
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What if the average price per unit increased to $ Recalculate the following:
a Contribution margin per unit. Round your answer to the nearest cent.
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b Contribution margin ratio. Enter your answer as a decimal value not a percentage rounded to four decimal places.
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c Sales revenue needed to break even. In your computations, use your rounded answer from part b above for the contribution margin ratio, and round your final answer to the nearest dollar.
$fill in the blank
d Sales revenue needed to achieve a target profit of $ In your computations, use your rounded answer from part b above for the contribution margin ratio, and round your final answer to the nearest dollar.
$fill in the blank
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