Determine contribution margin

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Calculate the following Contribution margin, break even, targeted profit.

Gilley, Inc., sells a single product.The company's most recent income statement is given below.

Sales (4,000 units)

$120,000

Less variable expenses

-68,000

Contribution margin

52,000

Less fixed expenses

-40,000

Net income

12000

a.Contribution margin per unit is $______

b. If sales are doubled to $240,000, total variable costs will equal $ _______________

c.If sales are doubled to $240,000, total fixed costs will equal $ _______________

d.If 10 more units are sold, profits will increase by $ _______________

e. Compute how many units must be sold to break even. # _______________

f.Compute how many units must be sold to achieve profits of $20,000. #_________

Reference no: EM1311851

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