Reference no: EM131880816

Question: 1. At its $30 selling price, Pacific Company has sales of $30,000, variable manufacturing costs of $6,000, fixed manufacturing costs of $2,000, variable selling and administrative costs of $6,000 and fixed selling and administrative costs of $2,000. What is the company's contribution margin per unit?

2. Barnam Company currently produces and sells 9,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $25,200. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $18,600. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)

3. ABC, Inc. produces a product that has a variable cost of $4.50 per unit. The company's fixed costs are $63,000. The product is sold for $8.00 per unit and the company desires to earn a target profit of $10,500. What is the amount of sales that will be necessary to earn the desired profit? (Do not round intermediate calculations.)

4. Zero, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $45,000. The product sells for $14.00 a unit and the company desires to earn a $18,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)