Q1) Gilley, Inc., sells single product. Company's most recent income statement is given below.
Sales (4,000 units) |
$120,000 |
Less variable expenses |
-68,000 |
Contribution margin |
52,000 |
Less fixed expenses |
-40,000 |
Net income |
12000 |
a. Contribution margin per unit is______
b. If sales are doubled to $240,000, total variable costs will equal _______
c. If sales are doubled to $240,000, total fixed costs will equal _______
d. If 10 more units are sold, profits will increase by ________
e. find out how many units should be sold to break even. _____
f. find out how many units should be sold to achieve profits of $20,000._____