3. Bergman Inc. has the following product information available:
Sales Price $20 per unit
Variable costs $8 per unit
Fixed Costs $18.00
Units produced and sold 12,000
- What is the break-even points in units?
- How many units need to be sold in order to earn a target profit of $180.000?
7. Destinos Company reported actual of $1,950.000, and fixed costs of $510,000. The contribution margin ratio is 30%.
Instructions: Compute the margin of safety in dollars and the margin of safety ratio.
8. Nadhill, Inc. provided the following information:
March April May
Projected merchandise purchases $76,000 $65,000 $70,000
Nadhill pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses (all of which are paid in cash) are budgeted to be $23,000 per month Nadhill pays operating expenses in the month incurred.
Instructions: Calculate Nadihill’s budgeted cash disbursements for May.
