Calculate the following Contribution margin, break even, targeted profit.
Gilley, Inc., sells a single product.The company's most recent income statement is given below.
|
Sales (4,000 units)
|
$120,000
|
|
Less variable expenses
|
-68,000
|
|
Contribution margin
|
52,000
|
|
Less fixed expenses
|
-40,000
|
|
Net income
|
12000
|
a.Contribution margin per unit is $______
b. If sales are doubled to $240,000, total variable costs will equal $ _______________
c.If sales are doubled to $240,000, total fixed costs will equal $ _______________
d.If 10 more units are sold, profits will increase by $ _______________
e. Compute how many units must be sold to break even. # _______________
f.Compute how many units must be sold to achieve profits of $20,000. #_________