Question

This is all of the information that is given

Required information [The following information applies to the questions displayed below.] Vernon Company makes and sells products with variable costs of $24 each. Vernon incurs annual fixed costs of $434,160. The current sales price is $105. Required The following requirements are interdependent. For example, the $324,000 desired profit introduced in Requirement calso applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. a. Determine the contribution margin per unit. Answer is complete and correct. Contribution margin per unit $ 81

Answer 1

b) Break even unit = Fixed cost/Contribution margin per unit = 434160/(105-24) = 5360 Units

Break even sales = 5360*105 = 562800

	Total	Per unit
Sales	562800	105
Variable cost	128640	24
Contribution margin	434160	81
Fixed cost	434160
Net income (loss)	0