14. Variable cost increases by $5 per unit. 15. Fixes costs decrease by $1,950.
ID: 2436491 • Letter: 1
Question
14. Variable cost increases by $5 per unit. 15. Fixes costs decrease by $1,950. 16. Sales price increase by 20% Begin by selecting the formula labels. Then enter the amounts to compute the number of wood tables the company must sell to break even under each Independent scenario, beginning with scenario 14. (Abbreviation used: CM-contribution margin, Complete all answer boxes. For items with a zero value, enter "0". Round the breakeven point- -the required sales in units-up to the nearest whole unit. For example, 10.25 uld be rounded to 11.) your 14. 15. 16.
Explanation / Answer
14. Variable cost increase by $5 per unit
Variable cost = $80 + $5 = $85
Contribution margin per unit = Sales price - Variable cost
Contribution margin per unit = $200 - $85 = $115
Required sales in units = Fixed costs + Target Profit / Contribution margin per unit
= $10,350 + $0 / $115 = 90 units
15. Fixes costs decrease by $1,950
Fixed Cost = $10,350 - $1,950 = $8,400
Contribution margin per unit = $200 - $80 = $120
Required sales in units = Fixed costs + Target Profit / Contribution margin per unit
= $8,400 + $0 / $120 = 70 units
16. Sales price increase by 20%
Sales price = $200 + 20% = $240
Contribution margin per unit = $240 - 80 = $160
Required sales in units = Fixed costs + Target Profit / Contribution margin per unit
= $10,350 + $0 / $160 = 64.68 units
= 70 units
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