Homework Answers
Variable cost=(30*70%)=$21
Contribution margin=Sales-Variable cost
=(30-21)=$9 per unit
=(9*800)=$7200
Contribution margin ratio=Contribution margin/Sales
=(9/30)=30%
Breakeven sales=Fixed cost/Contribution margin
=(6300/9)=700 units
Breakeven sales=Fixed cost/Contribution margin ratio
=6300/0.3=$21000
| Contribution margin | $7200 |
| Unit Contribution margin | $9 |
| Contribution margin ratio | 30% |
| Breakeven sales | $21,000 |
| Breakeven sales | 700 units |
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average price of $180. During the month, fixed costs were $25,866
and variable costs were 70% of sales.
(a) Determine the contribution margin in dollars,
per unit, and as a ratio.
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
(b) Using the contribution margin technique,
compute the break-even point in dollars and in units.
Break-even sales
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and variable costs were 60% of sales.
Determine the contribution margin in dollars, per unit, and as
a ratio. (Round answers to 0 decimal places, e.g.
1,225.)
Contribution margin
$
Contribution margin per unit
$
Contribution margin ratio
%
Using the contribution margin technique, compute the break-even
point in dollars and in units. (Round answers to 0...
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