a. Calculate the contribution margin per unit. b. Calculate the contribution margin ratio. c. Calculate the break-even

Question:

a. Calculate the per unit.
b. Calculate the ratio.
c. Calculate the break-even in units and sales dollars for 2012.
d. Calculate the profit earned in 2012.
e. Janna Processing is considering changes in plant operations and the production process for2013. The changes would result in a reduction of variable costs per unit of $6, and increase fixed manufacturing costs by $265 000. How many units would need to be sold to earn the same profit as in 2012? Would you recommend the changes?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...