Solve the following problem using the Contribution Margin Approach.
Genifax reported the following information for September: a) Determine the unit sales required to break even.
b) What unit sales would generate a net income of $30,000?
c) What unit sales would generate a profit of 20% of the sales dollars?
d) What sales dollars are required to produce a profit of $20,000?
e) If unit variable costs are reduced by 10% with no change in the fixed costs, what will the break-even point become?

Question

Solve the following problem using the Contribution Margin Approach.
Genifax reported the following information for September:  a) Determine the unit sales required to break even.
b) What unit sales would generate a net income of $30,000?
c) What unit sales would generate a profit of 20% of the sales dollars?
d) What sales dollars are required to produce a profit of $20,000?
e) If unit variable costs are reduced by 10% with no change in the fixed costs, what will the break-even point become?

Quizplus · Accepted Answer

The Answer of Solve the following problem using the Contribution Margin Approach.
Genifax reported the following information for September:  a) Determine the unit sales required to break even.
b) What unit sales would generate a net income of $30,000?
c) What unit sales would generate a profit of 20% of the sales dollars?
d) What sales dollars are required to produce a profit of $20,000?
e) If unit variable costs are reduced by 10% with no change in the fixed costs, what will the break-even point become?

Solve the Following Problem Using the Contribution Margin Approach