Compute the anticipated break-even sales

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Reference no: EM133327383

Scenario #1

ABC Corporation budgets sales of $2,400,000, fixed costs of $525,000, and variable costs of $1,560,000. What is the contribution margin and contribution margin ratio for ABC Corporation?

Scenario #2

If the contribution margin for ABC Corporation is 40%, sales were $3,400,000, and fixed costs were $800,000, what was the income form operations?

Scenario #3

For the current year ended October 31, ABC Corporation expects fixed costs of $14,000,000, a unit variable cost of $200, and a unit selling price of $300. Compute the anticipated break-even sales (units). Then compute the sales (units) required to realize income form operations of $1,400,000.

Scenario #4

Currently the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated by ABC Corporation to increase the unit selling price to $1,600. Compute the current break-even sales (units). Then compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $1,600, and all costs remain constant.

Reference no: EM133327383

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