Selling price per unit = $10
Variable cost per unit = Direct materials + Direct labor + Variable overhead + Variable marketing expense
= 1.50 + 1.20 + 0.90 + 0.40
= $4
Contribution margin per unit = Selling price per unit – Variable cost per unit
= 10 - 4
= $6
Total Fixed costs = Fixed marketing expense + Fixed administrative expense
= 13,000 + 35,000
= $48,000
Contribution margin ratio = Contribution margin per unit/Selling price per unit
= 6/10
= 60%
Break even sales dollars = Total Fixed cost/Contribution margin ratio
= 48,000/60%
= $80,000
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Paney Company makes calendars, Information on cost per unit is as follows: $1.50 1.20 Direct materials...
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