Homework Answers
1) Contribution margin = (550*130*40%) = $28600
Contribution margin per unit = 28600/550 = 52
Contribution margin ratio = 52/130 = 40%
2) Break even sales = 28600/.40 = $71500
Break even sales = 71500/130 = 550 Units
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average price of $180. During the month, fixed costs were $25,866
and variable costs were 70% of sales.
(a) Determine the contribution margin in dollars,
per unit, and as a ratio.
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
(b) Using the contribution margin technique,
compute the break-even point in dollars and in units.
Break-even sales
$
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units
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average price of $170. During the month, fixed costs were $29,784
and variable costs were 60% of sales.
Determine the contribution margin in dollars, per unit, and as
a ratio. (Round answers to 0 decimal places, e.g.
1,225.)
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
Using the contribution margin technique, compute the break-even
point in dollars and in units. (Round answers to 0...
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