Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit, and a contribution margin ratio of 20 percent Compute the following a Unit sales price and unit contribution margin for the given product b The sales volume in units required for Porter Corporation to earn an operating ...

a If the contribution margin ratio is 20 variable c ...

Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit, and a contribution margin

Question:

Porter has fixed costs of $500,000, variable costs of $32 per unit, and a ratio of 20 percent.
Compute the following.
a. Unit sales price and unit for the given product.
b. The sales volume in units required for Porter to earn an operating income of $900,000.
c. The dollar sales volume required for Porter to earn an operating income of $900,000.
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...