Elon Company sells 6,000 units at $ 80 per unit Variable costs are $ 50 per unit, and fixed costs are $ 50,000 Determine (a) The contribution margin ratio, (b) The unit contribution margin , and (c) Income from operations ...

a 375 80 50 80 or 480000 300000 480000 b 30 per uni ...

Elon Company sells 6,000 units at $ 80 per unit. Variable costs are $ 50 per unit,

Question:

Elon Company sells 6,000 units at $ 80 per unit. Variable costs are $ 50 per unit, and fixed costs are $ 50,000. Determine
(a) The ratio,
(b) The unit , and
(c) Income from operations.

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...