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Issue:

Book Reports

 

Written by:

Karen A

 

Date added:

April 24, 2017

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 177

 

Was viewed:

2820 times

 

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Essay content:

overhead 250,000 Total $525,000 Contribution per CD unit (from #1 above) $6.40 Contribution margin ($9.00-$2.60)/$9.00=.711 or 71.1% $525,000 Break-even volume in units = $6.40 = 82,031.25 units $525,000 Break-even volume in dollars = .711 = $738,396.62 = 82,031.25 x $9.00 = $738,281.25 (Difference is due to rounding the contribution margin percent) C...
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Calculate the net profit if 1 million CDs are sold Total Sales (1,000,000 units x $9.00) $9,000,000 Less: Total Variable Cost (1,000,000 units x $2.60) 2,600,000 Less: Total Fixed Cost 525,000 Net Profit $5,875,000 D. Calculate the necessary CD unit volume to achieve a $200,000 profit Profit objective = $200,000 Fixed cost = $525,000 Contribution per Unit = $6...
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