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PilkintonCorporation has provided its contribution format

income statement for July. Thecompany producesand sells a


single product.
Ifthe company sells 10,300 units, its total contribution margin
should be closestto:

The correct answer is: 391,400

Cost-volume-profit (CVP) analysis is a key factor in many


decisions, including choice of product lines, pricing ofproducts,
marketing strategy, and use of productive facilities. A
calculation used in a CVP analysis is thebreakeven point. Once
the breakeven point has been reached, operating income will
increase by the

a.
Variable costs per unit tor each additional unit sold
b.
Fixed costs per unit for each additional unit sold.
c.
Gross margin per unit for each additional unit sold.
d.
Contribution margin per unit for each additional unit sold. The correct answer is:
Contribution margin per unit for each additional unit sold. 

Catfur Company has fixed costs of $300,000. It produce two


products, X and Y. Product X had a variable costpercentage
equal to 60% of its $10 per unit selling price. Product Y has a
variable cost percentage equal to 70%of its $30 selling price.
For the past several years, sales of Product X has average 66
2/3% of the sales of ProductY. That ratio is not expected to
change. What is Catfur's breakeven point in sales dollars?Answer:
942,857
The correct answer is: 942,857

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