Homework Answers
Contribution margin=Sales-Variable cost
=(7,416,000-5,616,000)=$1,800,000
Contribution margin per unit=(1,800,000/18,000)=$100 per unit
Contribution margin ratio=Contribution margin/Sales
=(1,800,000/7,416,000)=0.242718446
Breakeven point=Fixed cost/Contribution margin
=(2,270,000/100)
=22700 units
Breakeven point=Fixed cost/Contribution margin ratio
=(2,270,000/0.242718446)
=$9,352,400.
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