Sunshine,Inc

question 46

Essay

Sunshine,Inc.sells a single product.The company's most recent income statement is given below.

Required:
a.Contribution margin per unit is _______________
b.If sales are doubled to $240,000,
total variable costs will equal _______________
c.If sales are doubled to $240,000,
total fixed costs will equal _______________
d.If Sunshine is past the breakeven point and
10 more units are sold,profits will increase by _______________
e.Compute how many units must be sold to break even. _______________
f.Compute how many units must be sold
to achieve a profit of $20,000. _______________

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Definitions:

Pizza

A popular dish of Italian origin consisting of a round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, baked at a high temperature.

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.

Crawfish Consumption

The act of eating crawfish, which can be influenced by cultural, regional, or seasonal factors.

Pollution

The presence of contaminants in the natural environment that cause harm or discomfort to organisms and ecosystems.