Question: Please give step by step guidelines on how you go to your answer. Thank you! Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target
Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit Schylar Pharmaceuticals, Inc.. plans to sell 130.000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $1,086.800. Total fixed costs equal $8,000,000. (Round ratios to four significant figures and dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio 2. Calculate the sales revenue needed to break even 3. Calculate the sales revenue needed to achieve a target profit of $245,000. 4. What if the average price per unit increased to $23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to 4 decimal places) c. Sales Revenue needed to break even d. Sales Revenue needed to achieve a target profit of $245,000
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