1 in 2011 raleigh sold 1 000 units at 500 each and earned net income of 50 000 383772

1. In 2011, Raleigh sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000. The same selling price is expected for 2012. Raleigh’s variable cost per unit will rise by 10% in 2012 due to increasing material costs, so they are tentatively planning to cut fixed costs by $15,000. How many units must Raleigh sell in 2012 to maintain the same income level as 2011? 2. Ramirez Corporation sells two types of computer chips. The sales mix is 30% (Q Chip) and 70% (Q Chip Plus). Q Chip has variable costs per unit of $36 and a selling price of $60. Q Chip Plus has variable costs per unit of $42 and a selling price of $78. The weighted average unit contribution margin for Ramirez is 3. Ramirez Corporation sells two types of computer chips. The sales mix is 30% (Q Chip) and 70% (Q Chip Plus). Q Chip has variable costs per unit of $36 and a selling price of $60. Q Chip Plus has variable costs per unit of $42 and a selling price of $78. Ramirez’s fixed costs are $540,000. How many units of Q Chip would be sold at the break even point? 4. Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $3,330,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break even point?