Question: (Information from the previous part is in the attached image) Answer 1 Particulars High end Set Economical Set Per Unit Per Unit Sales 3,500.00 1,000.00

(Information from the previous part is in the attached image)

(Information from the previous part is in the attached image) Answer 1

Answer 1 Particulars High end Set Economical Set Per Unit Per Unit Sales 3,500.00 1,000.00 b Labor 875.00 250.00 C Material 1,400.00 S 300.00 d -(b+c) Contribution S 1,225.00 $ 450.00 Contribution Margin (d/a*100) 35% 45% Particulars High end Set Economical Set Answer 2 Break even quantity = Fixed Cost / Contribution per Unit ($25000 + $85000) / 1225 per unit 89.80 or 89 units per month (89.80 x 12 months) 1077.60 or 1088 units per year ($16500+$85000)/450 per unit 225.56 or 226 units per month (225.56 units x 12 months) 2706.72 or 2707 units per year Particulars High end Set Economical Set Answer 3 | Break even quantity to earn proft & 4 $500,000 per year (Fixed Cost per year + Desired Profit) ={($25000+$85000) x 12 + ={(16,500+$85,000)*12 + / Contribution per unit $500,000} / 1225 per unit $300,000}/450 per unit =$1,820,000 /1225 $1,518,000/450 1485.71 or 1486 units 3373.33 or 3373 units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!