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Sunshine,Inc

Question 57

Essay

Sunshine,Inc.sells a single product.The company's most recent income statement is given below.
Sunshine,Inc.sells a single product.The company's most recent income statement is given below.     Required: 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 Sunshine is past the breakeven point and 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 a profit of $20,000. _______________
Required:
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 Sunshine is past the breakeven point and
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 a profit of $20,000. _______________

Correct Answer:

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a. Contribution margin per unit is $13 =...

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