Sultan Suns sells a single product. The company's most recent income statement is given below.

Required:
a. Contribution margin per unit is $ ________ per unit
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

Sultan Suns sells a single product. The company's most recent income statement is given below.

Required:
a. Contribution margin per unit is $ ________ per unit
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 Sultan Suns sells a single product. The company's most recent income statement is given below.

Required:
a. Contribution margin per unit is $ ________ per unit
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. ________

Sultan Suns Sells a Single Product