Solution-What amount should be the break-even sales

What amount should be the break-even sales

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Reference no: EM133078429

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Q1. Abby Corporation sells 3 products. Sales and Contribution Margin Ratio for the 3 products follow:

	Product
	A	B	C
Sales	$20,000	$40,000	100,000
Contribution Margin Ratio	45%	40%	15%

Given these information, how much is the Contribution Margin Ratio for the company as a whole?

Q2. Smile Company invested $31,250,000 in a cabinet-making business. It expects to earn a 25% return on its investment in equipment used in the manufacturing the cabinets. Its consultants estimate that 10,000 units of cabinets next year. Estimated costs per unit of cabinet at this level follows: Variable manufacturing costs = $1,562.50; Fixed selling and administrative costs = $625.00; Fixed manufacturing costs = $312.50. To accomplish the company objective, how much must be the price of one cabinet?

Q3. Bona Company has consistently generated these operating results for the past several years:

Sales		100%
Cost of Sales
Variable	50%
Fixed	10%	60%
Gross Profit		40%
Operating Expenses
Variable	20%
Fixed	15%	35%
Operating Income		5%

For the coming year, the expected total sales amounts to $19.50 million. In dollars, what amount should be the break-even sales?

Reference no: EM133078429

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What amount should be the break-even sales

Reference no: EM133078429

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