Reference no: EM132089035
Question: i) Zero, Inc. produces a product that has a variable cost of $8.00 per unit. The company's fixed costs are $40,000. The product sells for $13.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)
ii) ABC, Inc. produces a product that has a variable cost of $3.40 per unit. The company's fixed costs are $31,200. The product is sold for $6.00 per unit and the company desires to earn a target profit of $10,400. What is the amount of sales that will be necessary to earn the desired profit? (Do not round intermediate calculations.)
iii) Barnam Company currently produces and sells 11,000 units of a product that has a contribution margin of $8 per unit. The company sells the product for a sales price of $27 per unit. Fixed costs are $38,400. 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 $24,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)
iv) At its $34 selling price, Pacific Company has sales of $17,000, variable manufacturing costs of $7,000, fixed manufacturing costs of $1,000, variable selling and administrative costs of $3,000 and fixed selling and administrative costs of $1,000. What is the company's contribution margin per unit?
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