whatsapp

Connect on Whatsapp : +1 206 673 2541, Uninterrupted Access 24x7, 100% Confidential. Connect Now

Accounting | Accounting homework help

Paper Details

Ajack, using the marginal costing income statement, reports the following for sales of 100,000 units:
Sales ……. $750,000
Variable costs ….. $400,000
Contribution margin . $350,000
Fixed costs …… $210,000
Net income …… $140,000
(a) Determine the break-even point in units for Ajack.
(b) Assume that Ajack intends to have a profit of 20% more than the current profit. How many units must he sell to achieve his target?
(c) Ajack believes that the company could increase sales by 8,000 units. However, this will increase fixed costs by $22,000. What will be Ajack?s estimated income in this situation? Does the profit increase or decrease?
(d) What will the company?s new break-even point, assuming that Ajack?s fixed costs increase by $22,000?
(e) What is contribution margin and how can it be expressed?

Solution:

Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Formatting
Title Page
Citation
Place an Order

Calculate your paper price
Pages (550 words)
Approximate price: -