werner company produces and sells foil banking pans retailer 275 pan variable cost equal 165
WERNER COMPANY PRODUCES AND SELLS FOIL BANKING PANS TO RETAILER FOR 2.75 PER PAN, THE VARIABLE COST EQUAL 1.65 FIXED MANUFACTURING TOTALS= 11425 ADMINISTRATIVE COST TOTALS = 48350 Part 1 Fixed manufacturing costs $111,425 Fixed administrative costs $48,350 Total fixed costs $159,775 Selling price per unit $2.75 Variable costs per unit $1.65 Contribution margin per unit $1.10 Break even units 145,250 Part 2 Variable costs per unit $1.65 Variable manufacturing costs per unit Part 3 Total fixed costs $159,775 Target operating income $13,530 Contribution margin per unit $1.10 Units needed to earn target operating income Part 4 Units needed to earn target profit Selling price per unit $2.75 Sales revenue needed to earn target operating income