Cunningham 1e Accounting: Information for Business Decisions Solutions Manual
Full file at https://testbankuniv.eu/Accounting-Information-for-Business-Decisions-1st-Edition-Cunningham-Solutions-Manual (ii) Profit = (Contribution margin x Units sold) - Fixed costs
At 52 000 units
= $0.60(52 000) - $36 000 = $31 200 - $36 000 = ($4 800) loss
At 56 000 units
= $0.60(56 000) - $36 000 = $33 600 - $36 000 = ($2 400) loss
At 64 000 units
= $0.60(64 000) - $36 000 = $38 400 - $36 000 = $2 400 profit
At 68 000 units
= $0.60(68 000) - $36 000 = $40 800 - $36 000 = $4 800 profit
b.
(i) Contribution margin
= $1.80 - $1.40 = $0.40 per pack of bait
Break-even point
= $24 000 $0.40 = 60 000 packs of bait
(ii) At 52 000 units
= $0.40(52 000) - $24 000 = $20 800 - $24 000 = ($3 200) loss
At 56 000 units
= $0.40(56 000) - $24 000 = $22 400 - $24 000 = ($1 600) loss
At 64 000 units
= $0.40(64 000) - $24 000 = $25 600 - $24 000 = $1 600 profit
Š 2012 Cengage Learning Australia Full file at https://testbankuniv.eu/Accounting-Information-for-Business-Decisions-1st-Edition-Cunningham-Solutions-Manual