Gilley 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 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 profits of $20,000. ________

Question

Gilley 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 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 profits of $20,000. ________

Quizplus · Accepted Answer

The Answer of Gilley 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 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 profits of $20,000. ________