Question:

I need help with my accounting homework if anybody is able to help me thank?

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SALES (30,00 X $20.00 UNIT) $600,000

VARIABLE EXPENSE $360,000

CONTRIBUTION MARGIN $240,000

FIXED EXPENSE $250,000

NET OPERATING LOSS $(10,000)

3. REFER TO THE ORIGINAL DATA. THE MARKETING DEPARTMENT THINKS THAT A REDESINED PACKAGE FOR THE CAMERA WOULD HELP SALES. THE NEW PACKAGE WOULD INCREASE PACKAGING COST BY $0.75 PER UNIT, ASSUMING NO OTHER CHANGES, HOW MANY UNITS WOULD HAVE TO BE SOLD EACH MONTH TO EARN A PROFIT OF $9,200 ?

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  1. Additional variable exp. = $0.75 x 30,000 units = $22,500

    Units required to earn profit of $9,200 = 259,200/7.25 = 35,751.72 rounded to 35,752

    Counter check:

    Sales 35,752 units x $20 = $715,040

    less Variable expense 35,752 units x $12.75 = $455,838

    less Fixed expense $250,000

    = Profit $9,202

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