Question

Holly Inc. sells a single product for $230. Variable costs include $115 for each unit plus...

Holly Inc. sells a single product for $230. Variable costs include $115 for each unit plus a 8% sales commission. Fixed costs are $205,800 per month.

a. What is the contribution margin percentage? (Round final answer to 2 decimal places.)


b. What is the breakeven sales revenue? (Round final answer to the nearest whole dollars.)


c. What sales revenue is needed to achieve a $276,000 per month profit? (Round final answer to the nearest whole dollars.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable costs are $76 per unit. The company’s annual fixed costs are $338,400. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales % Sales Variable costs Contribution margin Fixed costs $ (2) Assume the company’s fixed costs increase by $126,000. What amount of sales (in dollars) is needed...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable costs are $88 per unit. The company’s annual fixed costs are $308,000. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales Sales Variable costs Contribution margin Fixed costs Net income Sales Variable costs Contribution margin Fixed costs Net income % Sales Variable costs Contribution margin Fixed costs...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs amount to $84 per unit. The fixed costs are $42,000 per month (round any units to the next highest full unit). Calculate: (show your calculations and round to 2 decimal places) What is the contribution margin per unit? What is the contribution margin ratio per unit? What is the monthly sales volume (in dollars) at the break-even point? How many units must be sold...
Jasmine Inc. sells a product for $60 per unit. Variable costs per unit are $32, and...
Jasmine Inc. sells a product for $60 per unit. Variable costs per unit are $32, and monthly fixed costs are $210,000. a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $159,600? c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars?
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per...
2. Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 170 100 % Variable expenses 68 40 % Contribution margin $ 102 60 % Fixed expenses are $346,000 per month. The company is currently selling 4100 units per month. Required: Calculate the Following: Contribution Margin Ratio: % Break Even point in Sales Dollars (rounded to the whole dollar) $ Margin of Safety in Units (nearest whole units)...
Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company’s annual fixed costs are $734,400. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. (2) Assume the company’s fixed costs increase by $138,000. What amount of sales (in dollars) is needed to break even? BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of...
Lindt Company sells a product to retailers for P200. The unit variable cost is P40 plus...
Lindt Company sells a product to retailers for P200. The unit variable cost is P40 plus a selling commission of 10%. Fixed manufacturing cost totals P1,250,000 per month, while fixed selling and administrative cost equals P763,600. The income tax rate is 30%. What will be the required sales to achieve an after-tax profit of P123,200?
6.Flannigan Company manufactures and sells a single product that sells for $640 per unit; variable costs...
6.Flannigan Company manufactures and sells a single product that sells for $640 per unit; variable costs are $352. Annual fixed costs are $985,500. Current sales volume is $4,390,000. Compute the current margin of safety in dollars for Flannigan Company. 1,647,975. $2,190,000. $2,200,000. $3,520,530. $3,076,950.
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable...
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit. 2. A firm expects to sell 24,800 units of its product at $10.80 per unit and to incur variable costs per unit of $5.80. Total fixed costs are $68,000. The total contribution margin is: 3. McCoy Brothers manufactures and sells two products, A...
Lights Manufacturing produces a single product that sells for $ 150$150. Variable costs per unit equal...
Lights Manufacturing produces a single product that sells for $ 150$150. Variable costs per unit equal $ 50$50. The company expects total fixed costs to be $ 80 comma 000$80,000 for the next month at the projected sales level of 1 comma 0001,000 units. What is the current breakeven point in terms of number of​ units?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT