Question

Partner Industries sells a single product for $60 that has a variable cost of $40. Fixed costs amount to $15 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be: ( 8 04:31:11 Multiple Choice Print O $5. O O $60. O an amount that cannot be derived based on the information presented O an amount other than $5, $20, or $60 and one that can be derived based on the information presented.

Answer 1

4	Sales price per unit	$60
	Variable cost per unit	$40
	Contribution margin per unit	$20
	Fixed cost per unit	$15
	Profit per unit	$5
	So it means that the Profit per unit is $5 per unit,so any increase in units will result into
	a increase in profit of $5
	So Option A is answer
5	Sales Revenue	$75,78,000
	Variable cost	$54,00,000
	Contribution margin	$21,78,000
	Contribution margin per unit($2,178,000/18000 units)	$121
	So Option B is answer