Business, 29.08.2020 01:01 jbutler7995

A furniture manucturer specializes in wood tables. The tables sell for per unit and incur per unit in variable costs. The company has in fixed costs per month. The company desires to earn an operating profit of per month. 1. Calculate the required sales in units to earn the target profit using the equation method.
2. Calculate the required sales in units to earn the target profit using the contribution margin method.
3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.
4. Calculate the required sales in units to break even using the contribution margin method.

Answers: 3

Show answers

Answers

Answer from: Batzs3rdacct

1. 100 units

2. 300 units

3. $30,000

4. 100 units

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6000 in fixed costs per month. The company desires to earn an operating profit of $12000 per month.

1. Calculate the required sales in units to earn the target profit using the equation method.

2. Calculate the required sales in units to earn the target profit using the contribution margin method.

3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.

4. Calculate the required sales in units to break even using the contribution margin method.

The explanation to the answers is now given as follows:

1. Calculate the required sales in units to earn the target profit using the equation method.

This can be calculated using the following formula:

Target profit = Net sales revenue - Total variable cost - Total fixed cost (1)

Where, by letting q denotes quantity sold;

Target profit = $12,000 per month

Net sales revenue = Selling price per unit * quantity sold = $100 * q = 100q

Total variable cost = Variable cost per unit * quantity sold = $40 * q = 40q

Total fixed cost = $6,000 per month

Substituting the values into equation (1) and solve for q, we have:

$12,000 = $100q - $40q - $6,000

$12,000 - $6,000 = $60q

$6,000 = $60q

q = $6,000 / $60

q = 100 units.

2. Calculate the required sales in units to earn the target profit using the contribution margin method.

Contribution margin per unit = Selling price per unit – Variable cost per unit = $100 - $40 = $60

Required sales in units to earn the target profit = (Fixed cost + Target profit) / Contribution margin per unit = ($6,000 + $12,000) / $60 = $18,000 / $60 = 300 units

3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.

Contribution margin ratio = Contribution margin / Selling price per unit = $60 / $100 = 0.60, or 60%

Required sales in dollars to earn the target profit = (Fixed cost + Target profit) / Contribution margin ratio = ($6,000 + $12,000) / 0.60 = $18,000 / 0.60 = $30,000

4. Calculate the required sales in units to break even using the contribution margin method.

Sales in units to break even = Fixed cost / Contribution margin per unit = $6,000 / $60 = 100 units

Answer from: Quest

answer; the coefficient of determination;

Answer from: Quest

This app is rigge im si mad

Another question on Business

Business, 22.06.2019 08:10

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work

Answers: 1

Answer

Business, 22.06.2019 11:30

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is

Answers: 2

Answer

Business, 22.06.2019 16:10

Answer the following questions using the banker’s algorithm: a. illustrate that the system is in a safe state by demonstrating an order in which the processes may complete. b. if a request from process p1 arrives for (1, 1, 0, 0), can the request be granted immediately? c. if a request from process p

Answers: 1

Answer

Business, 22.06.2019 18:50

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)

Answers: 3

Answer

You know the right answer?

A furniture manucturer specializes in wood tables. The tables sell for per unit and incur per unit i...

Questions