Question: Step 1 . . . Calculate the contribution margin per unit for Case 1 . Contribution Margin per Unit = Selling Price per Unit Variable

Step 1...Calculate the contribution margin per unit for Case 1.
Contribution Margin per Unit=Selling Price per UnitVariable Cost per UnitContribution Margin per Unit equals Selling Price per Unit minus Variable Cost per Unit
Contribution Margin per Unit=Selling Price per UnitVariable Cost per Unit
Contribution Margin per Unit=$1,0008%$30Contribution Margin per Unit equals $ 1 comma 000 center dot 8% minus $ 30
Contribution Margin per Unit=$1,0008%$30
Contribution Margin per Unit=$80$30Contribution Margin per Unit equals $ 80 minus $ 30
Contribution Margin per Unit=$80$30
Contribution Margin per Unit=$50Contribution Margin per Unit equals $ 50
Contribution Margin per Unit=$50
Step 2...Calculate the break-even point for Case 1.
Break-Even Point=Fixed CostsContribution Margin per UnitBreak-Even Point equals the fraction with numerator Fixed Costs and denominator Contribution Margin per Unit end-fraction
Break-Even Point=Fixed CostsContribution Margin per Unit
Break-Even Point=$27,000$50Break-Even Point equals the fraction with numerator $ 27 comma 000 and denominator $ 50 end-fraction
Break-Even Point=$27,000$50
Break-Even Point=540 ticketsBreak-Even Point equals 540 tickets
Break-Even Point=540 tickets
Step 3...Calculate the target operating income for Case 1.
Target Operating Income=Fixed Costs+Target Operating IncomeContribution Margin per UnitTarget Operating Income equals the fraction with numerator Fixed Costs plus Target Operating Income and denominator Contribution Margin per Unit end-fraction
Target Operating Income=Fixed Costs+Target Operating IncomeContribution Margin per Unit
Target Operating Income=$27,000+$18,000$50Target Operating Income equals the fraction with numerator $ 27 comma 000 plus $ 18 comma 000 and denominator $ 50 end-fraction
Target Operating Income=$27,000+$18,000$50
Target Operating Income=$45,000$50Target Operating Income equals the fraction with numerator $ 45 comma 000 and denominator $ 50 end-fraction
Target Operating Income=$45,000$50
Target Operating Income=900 ticketsTarget Operating Income equals 900 tickets
Target Operating Income=900 tickets
Step 4
Repeat the same calculations for Case 2, Case 3, and Case 4.
Toy Company manufactures smiley balls. The company has a ...
So, the company needs to sell 46,000 units to earn a profit of 150,000 Rupees before tax. At a selling price of 25 Rupees per unit...
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