Question: Thach LLC has provided the following contribution format income statement for the sales of 10,000 units: Answer the following two independent questions related to the

Thach LLC has provided the following contribution format income statement for the sales of 10,000 units:Thach LLC has provided the following contribution format income statement for the

Answer the following two independent questions related to the data above for Thach LLC:

1) Estimate how many units must be sold to achieve a target profit of $50,000.

2) If the number of units sold decreases by 2,000 units, sales price increases $3 per unit,

variable costs increase $1 per unit and fixed costs decrease $7,000, what would be the resulting net operating income?

Please show work

$ Sales Variable costs Contribution margin Fixed costs Net operating income 650,000 570,000 80,000 62,000 18,000 $ $

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!