Jones Corporation sells a single product. Management has provided the following data for two levels of monthly
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Question:
Jones Corporation sells a single product. Management has provided the following data for two levels of monthly sales volume. The company sells the product for $172.50 per unit. | |||
Sales Volume in Units | 4,000 | 5,000 | |
Cost of Sales (COS)* | $ 307,600 | $ 384,500 | |
Selling, General & Administrative Costs (SG&A)* | $ 321,200 | $ 337,000 | |
Selling Price Per Unit | $ 173 |
REQUIRED
1. Calculate the total contribution margin when 4,300 units are sold. Be sure to show and label your calculations.
2. What is the breakeven point in Sales dollars if Advertising (a fixed SG&A cost) is increased by $40,000? Be sure to show and label your calculations.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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