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#### Complete the following problems using the following ratios: Sales level at which operating income is zero    If sales above breakeven, then profit    If sales below breakeven, then loss    Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales \$ = Fixed expenses + Operating Income / Contribution Margin Ratio   (1) Calculate the break even number of units if the fixed expenses are \$7,000 and the contribution margin is \$14 per unit

###### Finance

Complete the following problems using the following ratios:

• Sales level at which operating income is zero
•  If sales above breakeven, then profit
•  If sales below breakeven, then loss
•  Fixed expenses = total contribution margin
• Total sales = total expenses

Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit

Break Even Point: Sales \$ = Fixed expenses + Operating Income / Contribution Margin Ratio

(1) Calculate the break even number of units if the fixed expenses are \$7,000 and the contribution margin is \$14 per unit.

(2) Calculate the break even sales dollars if the fixed expenses are \$7,000 and the contribution ratio is 40%.

(3) Calculate the break even number of units with a target profit of \$120,000 if the fixed expenses are \$15,000 and the contribution margin is \$60 per unit.

## 3.94 USD

### Option 2

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