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Question - Patterson parkas company's sale revenue is $30 per unit, variable costs are $19.50 per unit, and fixed costs are $147,000.
a- Compute Patterson's contribution margin per unit and contribution margin ratio
b- Determine the number of units Patterson must sell to break even
c- Determine the sales revenue required to earn (pretax) income equal to 20% of revenue.
d- How many units must Patterson sell to generate an after tax profit of $109,200 if the tax rate is 35%
e- Patterson is considering increasing its advertising expenses by $38,500.How much of an increase in sales units is necessary from expanded advertising to justify this expenditure(generate an incremental contribution margin of $38,500)?
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