+1-316-444-1378

Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incursvariable manufacturing costs of $24 per unit. Variable Selling expenses are $12 per unit annual fixedmanufacturing costs are $189000 and fixed selling and administrative costs are $141000 per year.Determine the break-even point in units and dollars using the following approaches.a. Equation methodb. Contribution margin per unitc. Contribution margin ratiod. Confirm your results by preparing a contribution margin income statement for the break-evensales volume.Then the next problem I have is this.Webster Training Services (WTS) provides instruction on the use of computer software for theemployees of its corporate clients. It offers courses in the clients offices on the clients equipment. Theonly major expense WTS incurs is instructor salaries; it pays instructors $5000 per course taught. WTSrecently agreed to offer a course of instruction to the employees of Chambers Incorporated at a price of$400 per student. Chambers estimated that 20 students would attend the course.Base your answer on the preceding information:a. Relative to the number of students in a single course is the cost of instruction a fixed or variablecost? Pretty sure this is variableb. Determine the profit assuming 20 students attend the course.c. Determine the profit assuming a 10 percent increase in enrollment (i.e. enrollment increases to22 students). What is the percentage change in profitabilityd. Determine the profit assuming a 10 percent decrease in enrollment (i.e. enrollment decreasesto 18 students). What is the percentage change in profitabilitye. Explain why a 10 percent shift in enrollment produces more than a 10 percent shift inprofitability. Use the term that identifies this phenomenon.

Categories: Uncategorized