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Patterson parkas company's sale revenue is $30 per unit,variable costs are $19.50 per unit, and fixed costs are $147,000.

a-compute Patterson's contribution margin per unit and contribution margin ratio

b-determine the number of units Patterson must sell to break even

c-determine the sales revenue required to earn (pretax) income equal to 20% of revenue.

d-how many units must Patterson sell to generate an after tax profit of $109,200 if the tax rate is 35%

e-Patterson is considering increasing its advertising expenses by $38,500. How much of an increase in sales units is necessary from expanded advertising to justify this expenditure(generate an incremental contribution margin of $38,500)?

Accounting Basics, Accounting

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  • Reference No.:- M944142

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