Schylar Pharmaceuticals, Inc., plans to sell 125,000 units of antibiotic at an average price of...
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Schylar Pharmaceuticals, Inc., plans to sell 125,000 units of antibiotic at an average price of $18 each in the coming year. Total variable costs equal $855,000. Total fixed costs equal $7,800,000. Required: 1. What is the contribution margin per unit? Round your answer to the nearest cent. q What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.) 2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar. $ 3. Calculate the sales revenue needed to achieve a target profit of $220,000. Round your answer to the nearest dollar. $ 4. What if the average price per unit increased to $19.50 ? Recalculate the following: a. Contribution margin per unit. Round your answer to the nearest cent. $ b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. c. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. $ $
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