Hermione Corporation forecasts that next year it can sell 35,000 units of its family-sized ready-to-eat meals for $1,610,000. The expected contribution margin ratio is 50%. Fixed costs are estimated to be $460,000.
Do not enter dollar signs or commas in the input boxes.
a) What is the selling price per unit?
Round your answer to 2 decimal places.
Selling Price: $
Answer
b) Calculate the contribution margin if 36,000 units are produced and sold.
Round your answer to the nearest whole number.
Contribution Margin: $
Answer
c) Calculate the contribution margin per unit.
Round your answer to 2 decimal places.
CM per unit: $
Answer
d) If the company decides to sell its products in the open market, determine the amount of units required to break-even.
Round up to the nearest whole unit.
Break-Even Units:
Answer
e) Determine the operating profit if 35,000 units are produced and sold.
Round your answer to the nearest whole number.
Operating Income: $
Answer
f) Determine the amount of revenue that needs to be generated to yield an operating profit of $111,000.
Round your answer to the nearest whole number.
Revenue: $
Answer
