Per Unit Sales Price $90 Variable Cost $54 Contribution Margin $36 TOTAL Fixed C

Q: Per Unit Sales Price $90 Variable Cost $54 Contribution Margin $36 TOTAL Fixed C

1. 2. 3. Breakeven Point sales Sales = VC + FC X*90 = 54*X + 432000 X = 12000

ID: 2423349 • Letter: P

Question

Per Unit

Sales Price $90

Variable Cost $54

Contribution Margin $36

TOTAL Fixed Costs $432,000

1. How many units must be sold to break-even? Show calculations

2. What is the total sales in dollars that must be generated for the company to earn a profit of $50,000? Show calculations

3. If the company is presently seling 14,000 units, but plans to spend an additional $135,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? Show calculations

Explanation / Answer

Breakeven Point sales Sales = VC + FC X*90 = 54*X + 432000 X = 12000

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Per Unit Sales $1,200,000 $60.00 Less Variable Expenses 800,000 $40.00 Contribut

Per capita coffee consumption last year was reported to be 4.2k or 9.24 pounds.

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Per Unit Sales Price $90 Variable Cost $54 Contribution Margin $36 TOTAL Fixed C

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