Webber Inc Instructions
Answer the Following Independent Questions and Show Computations Using

question 146

Essay

Webber Inc. developed the following information for its product: $\begin{array}{lr}&\text { Per Unit }\\\text { Sales price } & \$ 90 \\\text { Variable cost } & \underline{63} \\\text { Contribution margin } & \underline{\underline{\$ 27}} \\\\\text { Total fixed costs } & \$ 1215.000\end{array}$ Instructions
Answer the following independent questions and show computations using the contribution margin technique to support your answers.
1. How many units must be sold to break even?
2. What is the total sales that must be generated for the company to earn a profit of $60000?
3. If the company is presently selling 50000 units but plans to spend an additional $108000 on an advertising program how many additional units must the company sell to earn the same net income it is now making?
4. Using the original data in the problem compute a new break-even point in units if the unit sales price is increased 20% unit variable cost is increased by 10% and total fixed costs are increased by $236250.

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Definitions:

Profit-Sharing Plans

Employee benefit plans under which a company shares a portion of its profits with its employees, usually distributed based on set criteria such as seniority or salary level.

Genuine Ownership

The authentic and rightful possession of an item or property, confirmed through legal or official means.

Merit Raise

A pay increase given to individual workers according to an evaluation of their performance.

Performance Evaluation

The process of assessing an employee's job performance against pre-determined standards or objectives.