Question 4: Company A has two alternatives as below: Alternative Unit Sales Revenue: $13 Direct...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Question 4: Company A has two alternatives as below: Alternative Unit Sales Revenue: $13 Direct Labor Cost : $5 Direct Material Cost : $3 Total Fix Cost : $1.500.000 Alternative 11 Unit Sales Revenue: $13 Direct Labor Cost : $3 Direct Material Cost : $3 Total Fix Cost: $2.100.000 Required: a) According to Alternative I, how much revenue is needed to be earned to reach to Break Even Point? (unit contribution margin ratio) b) According to Alternative II, how much of a revenue need to be earned in order to yield a profit of $700.000? What is contribution margin ratio? c) Which alternative is better? Why
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
