Question

Remaining Time: 1 hour, 38 minutes, 46 seconds. Question Completion Status: QUESTION 20 One way to compute the total contribution margin is to subtract total fed expenses from topeng income True False QUESTION 21 On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level above the break-even point. . True False 2.857 points QUESTION 22 Data concerning Cutshall Enterprises Corporation's single product appear below 2857 points $190.00 Selling price per unit Variable expense per unit $91.20 Fixed expense per month $424,840 The unit sales to attain the company's monthly target profit of $16,000 is closest to 2872 Click Save and Submit to sat il auto, proctoru.com is sharing your screen Stop sharing Hide Save All wers

Answer 1

Given,

SP/ut = $190

VC/ut = $91.20

Therefore,

contribution/ut= SP/ut - VC/ut

= 190 - 91.20

= $98.80

Now,

Fixed cost for the month = 424,840

required Profit for the month= $16000

Therefore,

Required contribution= fixed cost + profit

= 424840+16000

= $ 440840

Thus,

units to be sold =

=total required contribution ÷ contribution/ut

= $ 440840 ÷ $ 98.80

= 4461.94

~ 4462 units.

Hence required units to be sold = 4462 units.