E7-21AFind breakeven and target profit volume
(Learning Objectives 1 & 2)
Socks Unlimited produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each package sells for $2.00.
Requirements
Socks Unlimited produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $1.20 per package. Each package sells for $2.00.
Requirements
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Compute the contribution margin per package and the contribution
margin ratio.
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Find the breakeven point in units and in dollars.
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Find the number of packages Socks Unlimited needs to sell to
earn a $22,000 operating income.
