Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of…


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Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of… 1 answer below » Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units. Instructions 1. What is (a) the contribution margin ratio and (b) the unit contribution margin? 2. Determine the break-even point in units. 3. Construct a cost-volume-profit chart, indicating the break-even point. 4. Construct a profit-volume chart, View complete question » Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units. Instructions 1. What is (a) the contribution margin ratio and (b) the unit contribution margin? 2. Determine the break-even point in units. 3. Construct a cost-volume-profit chart, indicating the break-even point. 4. Construct a profit-volume chart, indicating the break-even point. 5. What is the margin of safety? View less » Jul 24 2014 07:48 AM

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