Lorenza Corporation manufactures products that have variable costs of $32 per unit. Its fixed cost amounts to

Question:

Lorenza manufactures products that have variable costs of $32 per unit. Its fixed cost amounts to $360,000. It sells the products for $80 each.

Required
Use the per-unit approach to determine the break-even point in units and dollars.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...