Question

question 2: webber, inc. developed the following information for its product: per unit sales price $90 variable cost 63 contribution margin $27 total fixed costs $1,215,000 instructions answer the following independent questions and show computations using the contribution margin technique to support your answers. 1. how many units must be sold to break even? 2. what is the total sales that must be generated for the company to earn a profit of $60,000?

Answer 1

Based on the sales price, and the various costs, the units to be sold for Webber Inc. to break even is 45,000 units.

To earn $60,000, the company needs to sell $4,250,000.

What units are needed to break even?

This can be found as:

= Fixed costs / Contribution margin

= 1,215,000 / 27

= 45,000 units

How much sales are needed for $60,000 profit?

= (Fixed cost + Required profit) / Contribution margin ratio

= (1,215,000 + 60,000) / (27 / 90)

= $4,250,000

Find out more on breaking even at brainly.com/question/21137380.

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