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Accounting
Solution of those pproblems. My classs is Managerial Accountin
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- Giga manufacturing company’s monthly operating income if it sold 400,000 units
Units sold Unit Price Total
Sales 400000 $20 $8,000,000
Less Total Variable Cost 400000 $14 $5,600,000
Contribution $2,400,000
Less Total Fixed Cost $2,800,000
Operating Income – $400,000
The company incurred a loss of $400,000.
- Direct labor per unit =( 1.16 * $6)= $6.9
Total fixed costs after increment = ($2,800,000+$400,000) =$3,200,000
Break-even point in units: Sales – Total Variable costs – Total fixed costs =0
$20*x – $14.9*x – $3,200,000=0, where x = units sold.
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