For the current year ending April 30, Phillip Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95.
(a) Compute the anticipated break-even sales (units).
(b) Compute the sales (units) required to realize an operating profit of $8,000.
Fixed cost = 70000
Variable cost = 60
Selling price = 95
Contribution margin = Selling price - variable ...
This solution contains calculation of the break-even point, contribution margin, and operating profit.