Data concerning Matsumoto Corporations single product appear

Data concerning Matsumoto Corporation\'s single product appear below 36. $130.00 Variable expense per unit $52.00 Fixed expense per month $280,800 Selling price per unit me the company\'s target profit is $8,000. The dollar sales to attain that target profit is Assu closest to: A. $288,800 B. $497,378 C. $481,333 D. $722,000 7. Upchurc h Corporation produces and sells a single product. Data concerning that product appear below Selling price per unit $10 Variable expense per unit $34.00 Fixed expense per month $312,180 Assume the company\'s target profit is $12,000. The unit to attain that target profit is closest to A. 3,242 units B. 4,912 units C. 9,535 units D. 5,896 units

Solution

Answer 36 - C. $481,3333 BEP (in $ + Target Profit) = (Fixed Costs + Target Profit) / Contribution Margin Ratio Contribution Margin Ratio = Contribution / Sales Contribution Margin Ratio = ($130 - $52) / $130 = 60% BEP (in $ + Target Profit) = ($280,800 + $8,000) / 60% BEP (in $ + Target Profit) = $481,333.33 or say $481,333 (approx.) Answer 37 -B. 4,912 Units BEP (in Units + Target Profit) = (Fixed Costs + Target Profit) / Contribution per Unit Contribution per Unit = $100 (SP) - $34 (Variable Costs) Contribution per Unit = $66 BEP (in Units + Target Profit) = ($312,180 + $12,000) / $66 BEP (in Units + Target Profit) = 4,911.82 or say 4,912 Units (Approx.)