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Determine the firm breakeven point in units

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Q1. Arthur Company has the following data. Sales 4,000 units. Sales Price $60 per unit. Variable Cost $18 per unit. Fixed Costs $42,000. If the company wants to increase its total contribution margin by 40% in the next year, all other factors remaining the same, by how much will it need to increase its sales?

Q2. Consider the following data here. Sales of 1,000 units are $200,000 in revenue. Variable costs are $110,000. Contribution margin is $90,000. Fixed manufacturing costs are $40,000. Operating income of $50,000. Interest expense if $10,000. Earnings before taxes is $40,000. Taxes are 30%. Net income is $28,000. Shares Outstanding are 1,000 shares. Determine the firm breakeven point in units?

Reference no: EM132800374

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