Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in t

Question

2 years ago

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Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in t

he next period. Management also predicts that the contribution margin per unit will be $63.
(1) Compute the total expected dollar sales for next period.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units

Business

1 answer:

allochka39001 [22] · Answer 1 · 2022-06-03T11:53:17+03:00

Answer and Explanation:

1. The computation of the total expected dollar sales for next period is given below:

Sales $4,410,000

Less: variable cost $1,764,000

Contribution margin $2,646,000

Less: fixed cost $2,364,000

Pre tax income $282,000

2. The number of units that should be sold is

= $2,646,000 ÷ $63 per unit

= 42,000 units

In this way it should be calculated