Reference no: EM1311851
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)
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$120,000
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Less variable expenses
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-68,000
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Contribution margin
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52,000
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Less fixed expenses
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-40,000
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Net income
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12000
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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. #_________
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