Question

Check my work QS 21-6 Contribution margin per unit and break-even units LO P2 SBD Phone Company sells its waterproof phone case for $85 per unit. Fixed costs total $163,200, and variable costs are $34 per unit per unit per unit Contribution margin Choose Break Even Units Break even units

Answer 1

	CALCULATION OF CONTRIBUTION MARGIN
	PARTICULARS	AMOUNT
	Selling Price Per Unit=	$                           85
	Less: Variable Cost Per Unit	$                           34
	Contribution Margin Per Unit	$                           51
	Answer = 1
	CALCULATION OF THE BREAK EVEN POINT IN UNITS
	Break Even point =      Fixed Cost / Contribution Margin Per Unit
	Break Even point =
	Fixed Cost =	$               1,63,200
	Divide By	"/" By
	Contribution Margin Per Unit =	$                           51
	Break Even point =	3200	Units
	Answer Break even point in units = 3,200 Units