Information concerning a product produced by Askew Company appears here. Sales price per unit .................. $145 Variable
Question:
Information concerning a product produced by Askew Company appears here.
Sales price per unit .................. $145
Variable cost per unit ................ $55
Total annual fixed manufacturing and operating costs . $810,000
Required
Determine the following.
a. Contribution margin per unit.
b. Number of units that Askew must sell to break even.
c. Sales level in units that Askew must reach to earn a profit of $360,000.
d. Determine the margin of safety in units, sales dollars, and as a percentage
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...
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a Sales price per unit 145 Variable cost per unit 55 Contribution marg...View the full answer
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Related Book For 
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
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