Assume the following information that is provided for Sympodium, Inc.
Total Sales Revenue $ 1 6,250,000
Less Variable Expenses
Variable material $ 4 ,875,000
Variable labor $ 1 ,625,000
Variable overhead $ 3 ,250,000
Total Variable Expenses $ 9 ,750,000
Contribution Margin $ 6 ,500,000
Less Fixed Expenses
Fixed Production Expenses $ 4 ,000,000
Fixed Selling Expenses $ 2 ,000,000
Total Fixed Expenses $ 6 ,000,000
Net Income $ 500,000
Sympodium sells 1 product for a price per unit of: $ 5 ,000
1. Calculate Break-Even in Units and Break-Even in Revenue.
2. What are the Total Fixed Expenses if the Sympodium sells 3,500 units?
3. Calculate Target-Income in Units and Break-Even in Revenue if the company wants to earn $2,000,000.
4. Prepare a new income statement if Sypodium raises its price to $5,500 and sells 3,000 units with no other changes.