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Wayne Corrugated Inc manufactures folding paperboard boxe.pdf

Wayne Corrugated, Inc., manufactures folding paperboard boxes from purchased paperboard. They sell these paperboard boxes to meat processing facilities across the Midwest. Wayne Corrugated, Inc., has fixed costs per year of $200,000. They manufacture just one product with a selling price per unit of $5.00 and a variable cost per unit of $1.00. Answer the following questions (you MUST show your work to earn credit). What is the breakeven point in units? What is the breakeven point in sales dollars? If the firm sold 55,000 units last year, what was the margin of safety in units? If the firm sold 55,000 units last year, what profit did it generate? If the firm had only sold 45,000 units last year, what amount of loss would have been generated? Use the original problem except assume fixed costs decreased by $25,000. What would the new breakeven point in units be? Use the original problem except assume unit variable costs decrease by $0.75. What would the new breakeven point in units be? Use the original problem except assume the selling price decreased by $2. What would the contribution ratio be? Use the original problem information. How many units would the firm have to sell to generate the target profit of $30,000?.

Wayne Corrugated Inc manufactures folding paperboard boxe.pdf

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Wayne Corrugated, Inc., manufactures folding paperboard boxes from purchased paperboard.
They sell these paperboard boxes to meat processing facilities across the Midwest.
Wayne Corrugated, Inc., has fixed costs per year of $200,000. They manufacture just one product
with a selling price per unit of $5.00 and a variable cost per unit of $1.00.
Answer the following questions (you MUST show your work to earn credit).
What is the breakeven point in units?
What is the breakeven point in sales dollars?
If the firm sold 55,000 units last year, what was the margin of safety in units?
If the firm sold 55,000 units last year, what profit did it generate?
If the firm had only sold 45,000 units last year, what amount of loss would have been generated?
Use the original problem except assume fixed costs decreased by $25,000. What would the new
breakeven point in units be?
Use the original problem except assume unit variable costs decrease by $0.75. What would the
new breakeven point in units be?
Use the original problem except assume the selling price decreased by $2. What would the
contribution ratio be?
Use the original problem information. How many units would the firm have to sell to generate the
target profit of $30,000?

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