41) If the selling price per unit of a product is $50, variable costs per unit are $40, and total fixed costs are $50,000, a company must sell 6,000 units to make a target operating income of $10,000.
42) Gilley, Inc., sells a single product. The company's most recent income statement is given below.
Sales (4,000 units)$120,000
Less variable expenses(68,000)
Contribution margin52,000
Less fixed expenses(40,000)
Net income$ 12,000
Required:
a.Contribution margin per unit is$ ________ per unit
b.If sales are doubled to $240,000,
total variable costs will equal$ ________
c.If sales are doubled to $240,000,
total fixed costs will equal$ ________
d.If 10 more units are sold, profits will increase by$ ________
e.Compute how many units must be sold to break even.# ________
f.Compute how many units must be sold
to achieve profits of $20,000.# ________
43) Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.
Sales$50,000
Less variable expenses(30,000)
Contribution margin20,000
Less fixed expenses(12,500)
Net income$ 7,500
Required:
a.Contribution margin ratio is________ %
b.Breakeven point in total sales dollars is$ ________
c.To achieve $40,000 in net income, sales must total$ ________
d.If
