Question

Exercise 11-18 Desired profit LO 11-5 Rundle Company incurs annual fixed costs of $69,850. Variable costs for Rundle's product are $24.50 per unit, and the sales price is $35.00 per unit. Rundle desires to earn an annual profit of $53,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units

          Exercise 11-18 Desired profit LO 11-5
Rundle Company incurs annual fixed costs of $69,850. Variable costs for
Rundle's product are $24.50 per unit, and the sales price is $35.00 per unit.
Rundle desires to earn an annual profit of $53,000.
Required
Use the per unit contribution margin approach to determine the sales volume
in units and dollars required to earn the desired profit. (Do not round
intermediate calculations. Round your final answers to the nearest whole
number.)
Sales in dollars
Sales volume in units

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Exercise 11-18 Desired profit LO 11-5
Rundle Company incurs annual fixed costs of 69,850. Variable costs for
Rundle's product are24.50 per unit, and the sales price is 35.00 per unit.
Rundle desires to earn an annual profit of53,000.
Required
Use the per unit contribution margin approach to determine the sales volume
in units and dollars required to earn the desired profit. (Do not round
intermediate calculations. Round your final answers to the nearest whole
number.)
Sales in dollars
Sales volume in units

Added by Paul P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

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Solved by Expert Kevra Barney

Step 1

The contribution margin per unit is the difference between the sales price per unit and the variable cost per unit. Contribution margin per unit = Sales price per unit - Variable cost per unit Contribution margin per unit = $35.00 - $24.50 Contribution margin per Show more…

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Exercise 11-18: Desired Profit (LO 11-5) Rundle Company incurs annual fixed costs of $69,850. Variable costs for Rundle's product are $24.50 per unit, and the sales price is $35.00 per unit. Rundle desires to earn an annual profit of $53,000. Required: Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars: Sales volume in units:

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