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Air Production Company produces pneumatic lifts used to assist emergency

Air Production Company produces pneumatic lifts used to assist emergency

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1. Breakeven: fixed costs = cm per unit fixed costs = cm percent $ $ 4,155,000.00 2,250.00 1,846.67 units $ 4,155,000.00 $ 7,848,333.33 52.94% sales 2. Reduce price, increase volume units Sales DM DL VOH V marketing contribution margin $ $ $ $ $ $ 1.00 3,750.00 495.00 795.00 475.00 235.00 1,750.00 Typical Month 3,700.00 $ 13,875,000.00 $ 1,831,500.00 $ 2,941,500.00 $ 1,757,500.00 $ 869,500.00 $ 6,475,000.00 fixed overhead fixed marketing $ $ 1,920,000.00 2,235,000.00 operating income $ 2,320,000.00 3. Special order Incremental revenues: DM DL VOH times 500 units = profit above prod cost Incremental revenues: incremental costs DM DL VOH lost contribution margin units Sales DM DL VOH V marketing contribution margin fixed overhead fixed marketing operating income 46.67% worse off…. $ 495.00 $ 795.00 $ 475.00 $ 1,765.00 $ 882,500.00 $ 250,000.00 $ 1,132,500.00 times 50 ...
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