Refer to QS21-6. Determine the In QS21-6, SBD Phone Company sells its cordless phone for $ 90

Question:

Refer to QS21-6. Determine the

In QS21-6, SBD Phone Company sells its cordless phone for $ 90 per unit. Fixed costs total $ 162,000, and variable costs are $ 36 per unit. Determine the

(1) Contribution margin ratio

(2) Break-even point in 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...