Homework Answers
Answer to Part 1:
Contribution margin per unit = Selling price per unit - Variable
expenses per unit
Contribution margin per unit = $140 - $85
Contribution margin per unit = $55
Breakeven point = Fixed costs / Contribution margin per
unit
Breakeven point = $64,000 / $55
Breakeven point = 1,164
Answer to Part 2:
Contribution margin per unit = Selling price per unit - Variable
expenses per unit
Contribution margin per unit = $160 - $85
Contribution margin per unit = $75
Breakeven point = Fixed costs / Contribution margin per
unit
Breakeven point = $64,000 / $75
Breakeven point = 853
Answer to Part 3:
Contribution margin per unit = Selling price per unit - Variable
expenses per unit
Contribution margin per unit = $120 - $85
Contribution margin per unit = $35
Breakeven point = Fixed costs / Contribution margin per
unit
Breakeven point = $64,000 / $35
Breakeven point = 1,829
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