1) Valdez Corporation has provided the following contribution format income stat
ID: 2557013 • Letter: 1
Question
1) Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
2) Lister Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
3) Maruca Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
4) Lenart Corporation has provided the following data for its two most recent years of operation:
Valdez Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $240,000 180,000 60,000 54,000 $ 6,000 The number of units that must be sold to achieve a target profit of $24,000 is closest to:Explanation / Answer
All the problems are separate problem, so I am solving first problem (Valdez Corporation). Please ask separate question for remaining problems.
Problem 1
Solution:
Target profit = $24,000
Fixed Expenses = $54,000
Contribution Margin Per Unit = Total Contribution Margin / Total Units = $60,000 / 6,000 Units = $10 per unit
Number of Units to be sold to achieve a target profit $24,000 = (Total Fixed Cost + Target Profit) / Contribution Margin Per Unit
= ($54,000 + $24,000) / 10
= $78,000 / 10
= 7,800 Units
Hence, the correct option is 7,800 Units
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Pls ask separate question for remaining parts.
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