Compute the contribution margin ratio and the breakeven point in total sales dollars for Wall Street Products

Question:

Compute the ratio and the breakeven point in total sales dollars for Wall Street Products if the selling price per unit is $16, the variable cost per unit is $8, and the fixed costs are $6,250.

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...