Exercise 6-12 (continued)
b.
Fixed expenses + Target profit
Unit sales to attain
target profit = Unit contribution margin
$180,000 + $60,000
= =20,000 units
$12 per unit
In sales dollars: 20,000 units × $40 per unit =$800,000
Alternative solution:
Dollar sales to attain = target profit CM ratio
= =$800,000
0.30
In units: $800,000 ÷ $40 per unit =20,000 units
c.
Fixed expenses
Break-even point = in unit sales Unit contribution margin
$180,000
= =11,250 units
$16 per unit
In sales dollars: 11,250 units × $40 per unit = $450,000
Break-even point= in sales dollars CM ratio
= =$450,000
0.40
In units: $450,000 ÷ $40 per unit =11,250 units
Bạn đang xem exercise 6- - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH06 COST VOLUME PROFIT RELATIONSHIPS