What is the breakeven point in dollar sales

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Reference no: EM133061988

Question - A company has a selling price of $16 a unit, variable costs of $8 a unit, and fixed costs of $20,000.

A) What is the breakeven point in dollar sales?

B) What quantity must be sold to earn an operating income of $40,000?

C) What is the Firm's contribution margin per unit and contribution margin percentage?

D) What is the breakeven in units if there is a 20% increase in fixed costs

E) Assume the company sells 10,000 units and the total contribution margin increases by 20%, what is the operating income for the company?

F) By how much can fixed cost increase, if the firm increases its sales price by $4 and wants to make an operating income of $40000 by selling 9,000 units?

G) Assume we have been selling 10,000 units. What is the operating income if there is a 10% decrease in units sold?

H) How many units need to be sold to make an after tax profit of $90,000? Assume a tax rate of 40%.

Reference no: EM133061988

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