Refer to QS 22-6. Determine the (1) Contribution margin ratio and (2) Break-even point in dollars. QS

Question:

Refer to QS 22-6. Determine the

(2) Break-even point in dollars.

QS 22-6

MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the (1) Contribution margin per unit and (2) break-even point in units.

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...