Compute the unit contribution margin

Assignment Help Corporate Finance

Reference no: EM13127636

Coastal Carolina Company produces a single product. the projected income statement for the coming year, based on sales of 100,000 units, is as follows: Sales 2,000,000 Less:Variable costs 1,000,000 contribution margin 900,000 less: fixed costs 765,000 oerating income 135,000

Required:
1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit?
2. compute the conribution margin ratio and the break even point in dollars. Supose that revenues are 200,000 greater than expected. what would the total profit be?
3. compute the margin of safety.
4. compute the operating leverage. compute th enew profit level if sales are 20 percent igher than expected.
5. how many units must be sold to earn a profit equal to 10 percent of sales?
6. asume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?

Reference no: EM13127636

Questions Cloud

What, if any, is the relationship between kc1 and kc2? : Consider the two equilibria and their equilibrium constants: (1) 2NO2(g) ↔ N2O4(g) KC1 (2) ½N2O4(g) ↔ NO2(g) KC2

The iliad : Using the epic "The Iliad" as reference. How does each character grapple with their limited free will?

How many ways hairline crack if order of selection matter : In how many ways can at least one of the 3 selected vials have a hairline crack if the order of selection does not matter?

Explain empirical and molecular formulae : Empirical and Molecular Formulae, The analysis of an organic compound produces the following elemental analysis: % C is 59.999% and % H is 4.476%.

Compute the unit contribution margin : Coastal Carolina Company produces a single product. the projected income statement for the coming year, based on sales of 100,000 units, is as follows: Sales 2,000,000 Less:Variable costs 1,000,000 contribution margin 900,000 less: fixed costs 765..

Power series representations : integral over gamma of e^(iz) / z^2 dz, where gamma(t) = e^(it), 0=

Professional services and banking : A CPA firm was purchased by a public company. The acquirer performs other professional services and has banking, insurance, and brokerage subsidiaries.

What is a passive activity : What is a Passive Activity? Why is there an active rental exception? How do you carry over/allocate rental losses? Why were these rules adopted? Should we have these rules?

Illustrate which procedure will not prevent or detect : The family and friends usually give the clerk cash as a"thank you". Illustrate which procedure will not prevent or detect this fraud?

User Account

All Pages