atr2the1
Mar 18, 2010, 02:40 AM
hi, I am very lost on this problem. It has no examples in the book to explain this. I have the answer to this problem but can figure how to get it. Hope someone can explain, can you give me some help on how to begin. Thanks
The book explains MOS in dollars and MOS percentage.
Problem: If the company want MOS to equal $40,000, it will need to sell about (in units):
Sales... 3,600 units
Selling price... $50 per unit
Variable expense... $15 per unit
Fixed expenses... $40,530
Answer:
a) 1,158 units
b) 1,958 units, it should be this answer.
c) 2,300 units
d) 800 units
Income Statement
Sales: 180,000
Variable exp 54,000
CM 126,000
Fix 40,530
Net Inc (126,000 - 40,530) = 86,530
CM Ratio: 0.7
Break-even: (40,530 / 35) = 1158
The book explains MOS in dollars and MOS percentage.
Problem: If the company want MOS to equal $40,000, it will need to sell about (in units):
Sales... 3,600 units
Selling price... $50 per unit
Variable expense... $15 per unit
Fixed expenses... $40,530
Answer:
a) 1,158 units
b) 1,958 units, it should be this answer.
c) 2,300 units
d) 800 units
Income Statement
Sales: 180,000
Variable exp 54,000
CM 126,000
Fix 40,530
Net Inc (126,000 - 40,530) = 86,530
CM Ratio: 0.7
Break-even: (40,530 / 35) = 1158