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The sales revenue for 10,000 radios is $254,500. Fixed costs are $59,000 and the profit at sale level is 35400?
The sales revenue for 10,000 radios is $254,500. Fixed costs are $59,000 and the profit at this sales level is $35,400.
Determine:
a) The selling price per radio.
$
b) The variable cost per radio.
$
c) The contribution margin per radio.
$
d) The break-even sales volume in units.
units.
Round all monetary values properly to two decimal places and round UP all volume in units to the nearest whole number.
3 Answers
- Mike TLv 77 years agoFavorite Answer
Profit = Revenue - Cost
Revenue = price * units
Cost = fixed cost + (variable cost) * units
a) 254000 = p * 10000
b) 35400 = 254500 - C
C = 59000 + vc * 10000
c) ...
d) 0 = R - C
R = p * u
C = 59000 + vc * u
Solve for u.
- ?Lv 77 years ago
sales revenue for 10,000 radios is $254,500
a)
254,500/10,000=2545/100= $25.45
rounded up, $26
Fixed costs are $59,000 and the profit at this sales level is $35,400.
d)
(59,000+35,400)/10,000 = 94,400/10,000 = 944/100= 94.4
or
95 units to break even
b)
variable cost
total minus fixed costs?
($254,500-$59,000)/10,000= 195,500/10,000= 1955/100 = $19.55
or
$20 rounded up
[unless target profit level is figured in there somewhere]
c)
no idea what makes up contribution margin
