Zeta Corp's Most Recent Income Statement Is Given Below Required

Essay

Zeta Corp's most recent income statement is given below.
$\begin{array}{lr}\text { Sales }(8,000 \text { units }) & \$ 160,000 \\\text { Less variable expenses } & (68,000)\\\text { Contribution margin } & 92,000 \\\text { Less fixed expenses } & (50,000) \\\text { Net income }&\$42,000\end{array}$ Required:
$\begin{array} { l l } \text {a.Contribution margin per unit is }&\$\_\_\_\_ \text { per unit }\\ \text {b. If sales are doubled to \( \$ 240,000 \), total variable costs will equal }&\$\_\_\_\_ \\ \text {c.If sales are doubled to \( \$ 240,000 \), total fixed costs will equal }&\$\_\_\_\_ \\ \text {d. If 20 more units are sold, profits will increase by}&\$\_\_\_\_ \\ \text { e. Compute how many units must be sold to break even.}&\#\_\_\_\_ \\ \text {f.Compute how many units must be sold to achieve profits of \( \$ 60,000 \). }&\#\_\_\_\_ \\\end{array}$