Question

Bridgeport Co., a manufacturer of rain barrels, had the following data for 2016. Sales 3,300 units Sales price $100 per unit Variable costs $37 per unit Fixed costs $172,557

(a) Your answer is correct. What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.) Contribution margin ratio % Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used

(b) What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.) Break-even point $ Click if you would like to Show Work for this question:

Answer 1

Contribution margin ratio = Contribution margin/Sales

= (100-37)/100

= 63%

Breakeven point = Fixed cost/CM ratio

= 172,557/63%

= 273,900