| Question 4: |
| Method 1: | ||
| For 1000 unit | Per unit | |
| Sales | $ 100,000 | $ 100 |
| VC | $ 65,000 | $ 65 |
| Contribution | $ 35,000 | $ 35 |
| For 1001 unit | ||
| Sales | $ 100,100 | |
| VC | $ 65,065 | |
| Contribution | $ 35,035 | |
| - Fixed Cost | $ 30,100 | |
| Net Income | $ 4,935 |
| Method 2: | |
| Contribution Margin | =35000/100000 |
| = 35.00% | |
| Increase in Sale Value | =100000/1000 |
| $ 100 | |
| Increase in Contribution/Net income | = 100 * 35.00% |
| $ 35 |
Question 10:
| Sales | $ 100,000 |
| VC | $ 65,000 |
| Contribution | $ 35,000 |
| - Fixed Cost | $ 30,100 |
| Net Income | $ 4,900 |
| Additional Net income Required | = 21000 - 4900 |
| = $ 16,100 | |
| Contribution per Unit (From Question 4) | $ 35 |
| Additional units to be sold | 460.00 |
| Total Units to be sold | = 1000+460 |
| 1,460.00 |
Question 11:
| Sales | $ 100,000 |
| VC | $ 65,000 |
| Contribution | $ 35,000 |
| - Fixed Cost | $ 30,100 |
| Net Income | $ 4,900 |
| Break Even Units | =Fixed Cost / Contribution per Unit |
| = 30100 / 35 | |
| = 860 Units | |
| Total Units Sold | = 1000 Units |
| Margin Safety (Units) | = 1000 - 860 |
| = 140 Units | |
| Margin Safety ($) | = 140*100 |
| 14,000 | |
| Margin Safety (Percent) | = 14000/100000 |
| 14.00% |
| Method 2: | |
| Break Even Value ($) | = Fixed Cost / Contrbution Margin |
| = 30100/0.35 | |
| $ 86,000 | |
| Margin Safety ($) | = 100000-86000 |
| $ 14,000 | |
| Margin Safety (Percent) | = 14000/100000 |
| 14.00% |
Required information [The following information applies to the questions displayed below.] Part 4 of 15 Oslo...
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