EJL Herbal Remedies sells several products for an average price of $17 per unit. Average variable costs

Question:

EJL Herbal Remedies sells several products for an average price of $17 per unit. Average variable costs per unit are as follows:
Direct material...................................................$5.00 Direct labor......................................................$1.00 Indirect manufacturing costs..................................$0.50 Selling commissions.............................................$3.00 EJL's annual fixed costs total...............................$82,500.
1. The per unit is:
A) $7.50
B) $10.50
C) $12
D) $14
2. The number of units that EJL must sell each year to break even is:
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...