Question: just need help with Q6 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final

 just need help with Q6 2. Determine (a) the unit variable

just need help with Q6

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places. Unit variable cost 68.70 Unit contribution margin 36.30 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 108,037 units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number. 110,930 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $145,250 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number. 114,931 units 6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar. $ 295,508 X 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar. 40,250 Income 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places. Unit variable cost 68.70 Unit contribution margin 36.30 3. Compute the break-even sales (units) for the current year. Enter the final answers rounded to the nearest whole number. 108,037 units 4. Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number. 110,930 units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $145,250 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number. 114,931 units 6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar. $ 295,508 X 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar. 40,250 Income 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales

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!