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EB6. LO 3.2Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The c
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Answer #1

a) Break even unit = 72000/(600-360) = 300 Units

b) Break even sales = 300*600 = 180000

c) Contribution margin income statement

Total Per unit
Sales 300000 600
Variable cost 180000 360
Contribution margin 120000 240
Fixed cost 72000
Operating income 48000

d) Required unit = (72000+120000)/240 = 800 Units

e) Required sales = (72000+120000)/.40 = $480000

f) Contribution margin income statement

Total
Sales 600000
Variable cost 360000
Contribution margin 240000
Fixed cost 72000
Operating income 168000
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