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Required Information Problem 5-4A Break-even analysls; Income targeting and forecesting LO C2, P2, A1 The following Informati

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Contribution margin per unit Proposed
Sales 38.30 per pair =796640/20800
Variable costs 15.32 per pair =(637312/20800)*50%
Contribution margin 22.98 per pair
Contribution margin ratio
Choose Numerator / Choose Denominator = Contribution margin ratio
Contribution margin per unit / Sales per unit = Contribution margin ratio
22.98 / 38.30 = 60%
Break even point in dollar sales with new machine
Choose Numerator / Choose Denominator = Break even point in Dollars
Total fixed costs / Contribution margin ratio = Break even point in Dollars
374000 / 60% = 623333 or 623333.33
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