Question 5 (15 points) In FY 2016 Bravo Company sold 10,000 units, incurred tota

Question

Question 5 (15 points) In FY 2016 Bravo Company sold 10,000 units, incurred total variable costs of S240,000, had a per unit contribution margin of $5, and reported a net loss of $19,000. in FY 2017 there will be total fixed costs of $75,000 and that all other sales & cost values will remain constant. Use this information to determine Bravo Company expects that 1. FY 2016 Unit Selling Price 2. FY 2016 Total Sales 3. FY 2016 Fixed Costs 4. FY 2017 Break Even in Units 5. FY 2017 Dollar Sales at breakeven point (Round any total dollar value to the nearest whole dollar & enter as whole dollars only. Round any unit dollar value to the nearest penny & enter with both dollar(s)& cents. Roun non-dollar decimal numbers to the next higher whole number and enter as a whole nur

Explanation / Answer

1 Unit selling price = (240000/10000)+5 = $29 2 Total sales = 10000*29 = $290000 3 Fixed costs = (10000*5)+19000 = $69000 4 break even units = Fixed costs/Unit contribution margin = 75000/5 = 15000 5 Dollar sales at break even point = 15000*29=435000

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