The Information That Follows Was Obtained from the Accounting Records

question 35

Essay

The information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 100,000 units.

Required:
A. Compute the company's per-unit contribution margin and break-even point in units.
B. How many units must Portofino sell to produce a target profit of $550,400?
C. Assume that Portofino was able to reduce the variable cost per unit by $4. What selling price could management charge if it desired to maintain the current break-even point?
D. Depreciation charges of $640,000 are included in the firm's fixed costs of $6,016,000. If these charges were to increase by 10%, what effect, if any, would this cost increase have on the company's contribution margin?

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Definitions:

Sexual Orientation

A preference for sexual partners of the same sex, the opposite sex, both sexes, or neither sex.

Nature

Refers to the phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Nurture

The action of caring for and encouraging the growth or development of someone or something.

Sociobiology

The study of how biology affects social behavior.