Reference no: EM132837562
1) Canada Mills Corporation's annual fixed costs are $717,000. Variable costs are equal to 40% of sales revenue.
a. What annual sales level must Canada Mills achieve in order to break even?
Break-even revenue $
b. What annual profit will Canada Mills earn on annual sales of $2,090,000?
Annual profit $
c. What annual sales level must be achieved in order to earn an annual income of $309,000?
Annual net income$
2) A small business calculates that its monthly fixed costs are $3,300.
If the business calculates its contribution rate to be 0.40, what level of monthly sales must be generated in order to break even?
3) A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed costs per week are $1200.
a. How many units must the firm sell per week to break even?
b. Determine the firm's weekly profit or loss if it sells: (i) 120 units per week (ii) 250 units per week
c. At what level of sales will the net income be $400 per week?