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(Solved): Gilley, Inc., sells a single product. The company's most recent income statement is given below. a ...



Gilley, Inc., sells a single product. The companys most recent income statement is given below.
a. Contribution margin per u

Gilley, Inc., sells a single product. The company's most recent income statement is given below. a. Contribution margin per unit is b. If sales are doubled to \( \$ 240,000 \), total variable costs will equal c. If sales are doubled to \( \$ 240,000 \), total fixed costs will equal d. If 10 more units are sold, profits will increase by e. Compute how many units must be sold to break even. # f. Compute how many units must be sold to achieve profits of \( \$ 20,000 \).


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Answer: a. Contribution margin per unit =Contribution ÷sales units =$52000÷4000 =13 per unit b. If sales are increased double (i. e 100%) then variable cost also increased by 100% Sales=($240000-$120000)÷$120000=100% Since sales are increased by 100%
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