2 Preyer Corporation produces and sells a single product Dat

2 Preyer Corporation produces and sells a single product. Data concerning that product appear below Selling price per unit Variable expense per unit $230.00 $48.30 $492,407 Fixed expense per month The break-even in monthly dollar sales is closest to: A. $2,344,795 B. $492,407 C. $623,300 D. $1,153,501 30. The contribution margin ratio of Baginski Corporation\'s only product is 53%. The company\'s monthly fxed expense is $617,980 and the company\'s monthly target proft is $23000. The dollar sales to attain that target profit is closest to: A. $1,166,000 B. $1,209,396 C. $339,719 D. $327,529 Moonen Corporation produces and sells a single product whose contribution margin ratio is 57%. The company\'s monthly fixed expense is $487,350 and the company\'s monthly target 31. proft is $10,000. The dollar sales to attain that target profit is closest to: A. $855,000 B. $277,790 C. $872,544 D. $283,490 32. Moonen Corporation produces and sells a single product whose contribution margin ratio is 57%. The company\'s monthly fixed expense is $487,350 and the company\'s monthly target profit is $20,000. The dollar sales to attain that target profit is closest to: A. $890,088 B. $378,790 ?. $5242,811 D. $289,624

Solution

Question 29) CALCULATION OF CONTRIBUTION MARGIN PER UNIT PARTICULARS AMOUNT Selling Price Per Unit= $                   230.00 Less: Variable Cost Per Unit $                     48.30 Contribution Margin Per Unit $                   181.70 Contribution Margin % 79.0% CALCULATION OF THE BREAK EVEN POINT IN DOLLARS Break Even point =      Fixed Cost / Contribution Margin % Break Even point =       Fixed Cost = $               4,92,407 Divide By \"/\" By Contribution Margin Per Unit = 79.0% Break Even point (Rounded to nearest next unit)       $               6,23,300 Units Answer = Option C = $ 623,300 Question 30) Target Sales = ( Fixed Cost + target Income ) / Contribution Margin % Target Sales = Fixed Cost = $               6,17,980 Add: \"+ \" Target Income = $                   23,000 Equal to = $               6,40,980 Divide By \"/\"By Contribution marrgin % 53% Equal to = $             12,09,396 Answer = Option B = $1,209,396 Question 31) Target Sales = ( Fixed Cost + target Income ) / Contribution Margin % Target Sales = Fixed Cost = $               4,87,350 Add: \"+ \" Target Income = $                   10,000 Equal to = $               4,97,350 Divide By \"/\"By Contribution marrgin % 57% Equal to = $               8,72,544 Answer = Option C = $ 872,544 Question 32) Target Sales = ( Fixed Cost + target Income ) / Contribution Margin % Target Sales = Fixed Cost = $               4,87,350 Add: \"+ \" Target Income = $                   20,000 Equal to = $               5,07,350 Divide By \"/\"By Contribution marrgin % 57% Equal to = $               8,90,088 Answer = Option A = $ 890,088