Calculate the following contribution margin break even

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Reference no: EM13356023

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. #_________

Reference no: EM13356023

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