2) Pratt Corporation - 5 Points Information relating to the current operations o

Question

2) Pratt Corporation - 5 Points Information relating to the current operations of Pratt Corporation follows: Sales $120,000 Variable costs (36,000) Contribution margin $ 84,000 Fixed costs (70,000) Profit before taxes $ 14,000 Pratt's break-even point was 1,000 units. Compute Pratt's sales price per unit. 3) Bonnie Company - 5 Points Bonnie Company estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at $40 per unit, the CM ratio at 60 percent, and profit at $500,000. What is the firm budgeting for fixed costs in the coming period?

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Revenue 120,000.00 VC 36,000.00 Contribution 84,000.00 fixed costs 70,000.00 income 14,000.00 Contribution Margin 70.00% break even sales 100,000.00 ie FC/ PVR break even units 1,000.00 Selling price p u 100.00

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