Question

Press Ctrl+A 4. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January (12 Points) Sales (4,200 units) Variable expenses Contribution margin Fixed expenses Net operating income MC 155,400 100,800 54,600 42.400 12,200 If the company sells 4.600 units: 1- Compute the selling price per unit? 2- Compute the variable expenses per unit? 3. Compute the contribution margin per unit? 4. Compute the contribution margin in total? 5. Acoustic Concepts' unit contribution margin is $100, and its foued expenses are $35,000, what is the company's break-even point in terms on units? (10 Points)

Answer 1

Selling price per unit = Sales/Units sold = 155,400/4200 = 37 Variable expenses per unit = 100,800/4200 = 24 Contribution margin per unit = Selling price per unit - Variable expenses per unit = 37 - 24 = 13 Contribution margin in total = 4600*13 = 59,800
Break even units = Fixed expenses/Unit contribution margin = 35,000/100 = 350