Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The co
ID: 2508159 • Letter: Z
Question
Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are $40,000. The product sells for $12.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)
24,000 units
16,000 units
17,000 units
4,000 units
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units?
$210,000
$120,000
$60,000
$30,000
For 2013, Winchester Company sold 80,000 units at a selling price of $20 per unit. Variable cost per unit was $15, and Winchester's net income for the year was $40,000. What was the amount of Winchester's fixed costs?
$360,000
$440,000
$1,160,000
$400,000
Harris Company produces a product whose cost is $10. Assuming the company uses a cost-plus pricing system, what selling price would the company set to earn a profit margin of 20% of cost?
$2.00
$12.50
$50.00
$12.00
Explanation / Answer
As per chegg guidelines we answer one question per post. But I have answered multiple questions. Kindly post remaining questions in next post Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Sales price per unit 12.00 Less Variable Expenses per unit 9.50 Contribution Margin per unit = 12 - 9.50 2.50 Fixed cost 40,000.00 Net operating income 20,000.00 Contribution desired 60,000.00 volume of sales in units required to achieve the target profit = 60000/2.50 24,000.00 Q2 Sales price per unit 50.00 Less Variable Expenses per unit 20.00 Contribution Margin per unit = 50-20 30.00 CM Ratio = 30/50 60.00% Sales = 4000*50 200,000.00 Sales above break even =200,000 - 150,000 50,000.00 Profit company will make= 50,000*60% 30,000.00
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