Nombre Company management predicts $720,000 of variable costs, $866,000 of fixed costs, and a pretax income...
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Nombre Company management predicts $720,000 of variable costs, $866,000 of fixed costs, and a pretax income of $214,000 in the next period. Management also predicts that the contribution margin per unit will be $15. (1) Compute the total expected dollar sales for next period. Sales Variable costs Contribution margin Fixed costs Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: 1 Fixed costs plus pretax income Choose Denominator: Contribution margin per unit = # Units Units 0 Nombre Company management predicts $720,000 of variable costs, $866,000 of fixed costs, and a pretax income of $214,000 in the next period. Management also predicts that the contribution margin per unit will be $15. (1) Compute the total expected dollar sales for next period. Sales Variable costs Contribution margin Fixed costs Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: 1 Fixed costs plus pretax income Choose Denominator: Contribution margin per unit = # Units Units 0
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To compute the total expected dollar sales we can use the contribution margin ratio which is the con... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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