Calculating units to be sold to break even


Q1) Gilley, Inc., sells single product. 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. Calculate how many units should be sold to break even. _____

f. Calculate how many units should be sold to achieve profits of $20,000._____

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Accounting Basics: Calculating units to be sold to break even
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