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A company has a selling price of $20 a unit, variable costs of $10 a...

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Accounting

A company has a selling price of $20 a unit, variable costs of $10 a unit, and fixed costs of $40,000.

A.What is the breakeven point in dollar sales?

B.What quantity must be sold to earn a profit of $60,000?

C.What is the Firms total contribution margin at breakeven?

D.How much revenue is needed to make an aftertax profit of $120,000? Assume a tax rate of 40%.

E.Assume the company sells 12,000 units and the total contribution margin increases by 10%, holding revenues constant, what is the income for the company?

F.Assume we have been selling 14,000 units. What is the net income if there is a 20% decrease in units sold?

G.By how much can fixed cost increase, if the firm increases its sales price by $4 and wants to make a profit of $40,000 by selling 9,000 units?

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