Question: IF Land O'Lakes decided to cut their Half & Half product line, total fixed costs would only decrease by $55,000 from a cut to the

IF Land O'Lakes decided to cut their Half \& Half product line, total fixed costs would only decrease by $55,000 from a cut to the advertising cost. Of course, Half \& Half sales, direct material, and direct labor costs would disappear. All else would remain the same. Given this information as presented below, please fill out he following cells to calculate Land O'Lakes break even point and target profit for BUTTER only. BUTTER: Sales Price per Unit $5.35 Variable Cost per Unit $2.16 Total Fixed Costs $608,260 Target Profit $500,000 1) Total Fixed Costs 2) Contribution Margin per Unit 3) Contribution Margin Percentage 4) Breakeven Point in Units 5) Breakeven Point in Sales Dollars 6) Unit Sales Required for $500,000 Profit 7) Sales Dollars Required for $500,000 Profit IF Land O'Lakes decided to cut their Half \& Half product line, total fixed costs would only decrease by $55,000 from a cut to the advertising cost. Of course, Half \& Half sales, direct material, and direct labor costs would disappear. All else would remain the same. Given this information as presented below, please fill out he following cells to calculate Land O'Lakes break even point and target profit for BUTTER only. BUTTER: Sales Price per Unit $5.35 Variable Cost per Unit $2.16 Total Fixed Costs $608,260 Target Profit $500,000 1) Total Fixed Costs 2) Contribution Margin per Unit 3) Contribution Margin Percentage 4) Breakeven Point in Units 5) Breakeven Point in Sales Dollars 6) Unit Sales Required for $500,000 Profit 7) Sales Dollars Required for $500,000 Profit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
