1.
Contribution Margin per unit = 25 - (7.8+6+2.6+2.1) = $6.50 per
unit
Company's Contribution Margin ratio = 6.50 / 25 = 26%
Total Contribution Margin = 140000 x 25 - 140000 x 18.5 = $910000
2.
Sales Volume (Units) | 170000 |
Unit Contribution Margin | $ 6.50 |
Contribution Margin | $ 11,05,000 |
Less Fixed Expenses | $ 7,39,200 |
Operating Income | $ 3,65,800 |
3.
Sales Revenue | $ 45,00,000 |
Contribution Margin Ratio | 26% |
Contribution Margin | $ 11,70,000 |
Less Fixed Expenses | $ 7,39,200 |
Operating Income | $ 4,30,800 |
4.
Break Even Point units = $739200/6.50 = 113723 or 113724 units
Break Even Sales = $739200 / 26% = $2843077
5. Sales units = ($739200+269500)/6.50 = 155185 units
Score: 0.05 of 1 pt 4 of 10 (10 complete X Instructor-created question HW Score: 65.55%,...
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