The following data relate to a product sold by Hallstone Company:Total Variable costs $90,000Total fixed costs$27,000Predicted pre-tax income$18,000Contribution margin per unit$5.00(a) Calculate the number of units expected to be sold.(b) Calculate the expected total dollar sales.
What will be an ideal response?
(a) ($27,000 + 18,000)/$5 = 9,000 units
| (b) | Total Variable costs………………………… | $ 90,000 |
| ? | + Contribution margin ($5 ? 9,000)……….… | 45,000 |
| ? | Total sales…………………………………… | $135,000 |
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