Question volodya company reported the following data, Ask an Expert

Finance

Question: Volodya Company reported the following data regarding the product it sells:

Sales price Contribution margin ratio Fixed costs $20 40% $900,000

Required: Use the contribution margin ratio approach and consider each requirement separately.

What is the break-even point in dollars? In units?

To obtain a profit of $360,000, what must the sales be in dollars? In units?

If the sales price increases to $24 and variable costs do not change, what is the new break-even point in dollars? In units?

Sales price Contribution margin ratio Fixed costs $20 40% $900,000

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93070684

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Joanne invested 15000 six years ago her arithmetic average

Joanne invested $15,000 six years ago. Her arithmetic average return on this investment is 8.72%, and her geometric average return is 8.5%. What is Joanne's Portfolio worth today?

What are the possible downsides of momentum investing is it

What are the possible downsides of momentum investing? Is it worth it do utilise this approach?

We just signed a lease contract in a 200000 sf office

We just signed a lease contract in a 200,000 SF office building complex for $25/SF/year with rents paid in arrears (at the end of the year) annually. The rent will increase by 3% per year. The discount rate is 10%/year. ...

A study finds that the prices of stocks prior to large

A study finds that the prices of stocks prior to large dividend increases show on average consistently positive abnormal returns. Is this a violation of the efficient market hypothesis? Explain

What are financial ratios commonly used in quantitative

What are financial ratios commonly used in quantitative models of debt ratings? List THREE financial ratios that represent three different factors and explain why these ratios can capture the company's ability to meet it ...

One of your customers has just made a purchase in the

One of your customers has just made a purchase in the amount of $19,200. You have agreed to payments of $335 per month and will charge a monthly interest rate of 1.11 percent. How many months will it take for the account ...

An equally weighted portfolio consists of 41 assets which

An equally weighted portfolio consists of 41 assets which all have a standard deviation of 0.137. The average covariance between the assets is 0.118. What is the standard deviation of this portfolio expressed as a percen ...

You are considering investing in a bank account that pays a

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $200,000?

What are the implications of increased index investing for

What are the implications of increased index investing for market efficiency?

Risk versus ambiguitya define each of the concepts risk and

Risk versus ambiguity a. Define each of the concepts risk and ambiguity (sometimes called Knightian uncertainty). b. Provide a simple example that incorporates risk in monetary payoffs but not ambiguity. c. Describe a si ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert