Exercise Bruce Co. had sales per unit of $20 and variable costs per unit of $12. Its fixed costs total $1000. Calculate the following: Contribution margin per unt Contribution margin ratio Break-even point in units Break-even point in sales If Bruce Co. wants a target net income (TNI) of $2000, calculate: Sales required for TNI (in $) Exercise Pat Co. had sales per unit of $24 and variable costs per unit of $18. Its fixed costs total $3000 and current sales total $15000. Calculate the Contribution margin per unit Contribution margin ratio Break-even point in units Break-even point in sales Margin of Safety If Pat Co. wants a target net income (TNI) of $3600, calculate: Sales required for TNI (in $)
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4 or 40% - Break-even point in units = Fixed costs / Contribution margin per unit = 1000 / 8 = 125 units - Break-even point in sales = Break-even point in units * Sales per unit = 125 * 20 = $2500 - Sales required for TNI = (Fixed costs + Target net income) / Show more…
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