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For this cost volume profit scenario the variables are

Sales Profit= 25

Variable Cost= 15

Fixed Cost= 180

Contribution Margin= 10, Contribution Margin Ratio= 0.4, Breakeven in units= 18 units,

Breakeven point in dollars= 300

Calculate

1. Target Sales in units for achieving a 50,000 target NI

2. Target Sales in dollars for achieving a 50,000 target NI

3. Calculate what the new sales price should be in order to achieve a $10,000 NI using the breakeven in units for sales volume.

4. Calculate what the variable cost per unit would need to be in order to achieve a 10,000 NI using the breakeven in units for sales volume.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9965334

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