Answer:
Instructions are listed below.
Explanation:
Giving the following information:
selling price= $600
variable costs per unit of $360.
The monthly fixed expenses are $72,000.
a) Break-even point= fixed costs/ contribution margin
Break-even point= 72,000/(600 - 360)= 300 units
b) Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 72,000/(240/600)= $180,000
c) Contribution margin income statement:
Sales= 500*600= 300,000
Variable cost= 500*360= (180,000)
Contribution margin= 120,000
Fixed costs= (72,000)
Net operating income= 48,000
d) Profit= 120,000
Break-even point= (fixed costs + target profit)/ contribution margin
Break-even point= 192,000/240= 800 units
e) Break-even point (dollars)= (fixed costs + target profit)/ contribution margin ratio
Break-even point (dollars)= 192,000/(240/600)= $480,000
f) Contribution margin income statement:
Sales= 600,000
Variable costs= (10,000*360)= (360,000)
Contribution margin= 240,000
Fixed costs= (72,000)
Net operating income= 168,000