Bradford Products has the following product information available:
$\begin{array} { l l }
\text { Sales price } & \$ 25.00 \text { per unit } \
\text { Variable costs } & \$ 15.00 \text { per unit } \
\text { Fixed Costs (total) } & \$ 50000
\end{array}$
Required: Answer each of the following independent questions.
A. What is the contributidn margin per unit?
B. What is the contribution margin ratio?
C. How many units must be sold in order to break even?
D. How many units must be sold in order to earn a target profit of \$400 000? (ignore taxes)
E. Bradford is considering an advertising campaign that has a cost of 7 Dod The marketing department estimates that the campaign will increase sales by 1250 000. Should the company have the advertising campaign? Why ar why not? Show you calculations.

Question

Bradford Products has the following product information available:
 $\begin{array} { l l } 
\text { Sales price } & \$ 25.00 \text { per unit } \
\text { Variable costs } & \$ 15.00 \text { per unit } \
\text { Fixed Costs (total) } & \$ 50000
\end{array}$ 
Required: Answer each of the following independent questions.
 A. What is the contributidn margin per unit?
B. What is the contribution margin ratio?
C. How many units must be sold in order to break even?
D. How many units must be sold in order to earn a target profit of \$400 000? (ignore taxes)
E. Bradford is considering an advertising campaign that has a cost of 7 Dod The marketing department estimates that the campaign will increase sales by 1250 000. Should the company have the advertising campaign? Why ar why not? Show you calculations.

Quizplus · Accepted Answer

The Answer of Bradford Products has the following product information available:
 $\begin{array} { l l } 
\text { Sales price } & \$ 25.00 \text { per unit } \
\text { Variable costs } & \$ 15.00 \text { per unit } \
\text { Fixed Costs (total) } & \$ 50000
\end{array}$ 
Required: Answer each of the following independent questions.
 A. What is the contributidn margin per unit?
B. What is the contribution margin ratio?
C. How many units must be sold in order to break even?
D. How many units must be sold in order to earn a target profit of \$400 000? (ignore taxes)
E. Bradford is considering an advertising campaign that has a cost of 7 Dod The marketing department estimates that the campaign will increase sales by 1250 000. Should the company have the advertising campaign? Why ar why not? Show you calculations.

Bradford Products Has the Following Product Information Available Required: Answer Each of the Following Independent Questions