g CVP analyses (18 points) MusicWizard, Inc. manufactures and sells trombones with the following price and cost characteristics:

Question

3 years ago

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g CVP analyses (18 points) MusicWizard, Inc. manufactures and sells trombones with the following price and cost characteristics:

Selling price per unit $125.00 Variable manufacturing cost per unit $50 Variable marketing cost per unit $25 Total fixed manufacturing costs $100,000 Total fixed administrative costs $80,000 a. How many units of products must MusicWizard sell to make an operating profit of $120,000 for the year

Business

1 answer:

Katarina [22] · Answer 1 · 2022-06-22T02:33:27+03:00

Answer:

Break-even point in units= 6,000

Explanation:

Giving the following information:

Selling price per unit $125.00

Total unitary variable cost= $75

Total fixed costs= $180,000

Desired profit= $120,000

<u>To calculate the number of units to be sold, we need to use the following formula:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (180,000 + 120,000) / (125 - 75)

Break-even point in units= 6,000