Prepare breakeven analysis and a C-V-P analysis planning future .les using the information below. (100 pts) Br.keven Analysis a. Planning Future Sa. Write Company has a maximum capacity of 200,000 units per y.r. Variable manufacturing costs are S12 per unit. Fixed overhead is S600,000 per year. Variable .11ing, and administrative costs are S5 per unit, a. fixed selling and administrative costs are S300,000 per year. The current sales price is S23 per unit. Required 1. What is the br.keven point in (a) sales units and (b) dollars?
- How many units must Write Company sell to .rn a profit of S240.000 per year?
- A strike at one of the company's major suppliers has caused a shortage of materials, so the current year's production and are limited to 160,000 units. To partially offset the effect of the reduced on profit, management is planning to reduce fixed costs to S841,000. Variable cost per unit is the same as last year. The company has alr.dy sold 30,000 units at the regular selling price of S23 per unit.
a. What amount of fixed costs was covered by the total contribution margin of the first 30,000 units sold? b. What contribution margin per unit will be needed on the remaining 130,000 units to cover the remaining fixed costs and to earn a profit of S210,000 this y.r?
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