A manufacturer of major appliances provides the following information about the operations of the refrigeration division: Fixed
Question:
Fixed costs per period are $26 880; variable costs per unit are $360; selling price per unit is $640; and capacity is 150 units.
(a) Compute
(i) The contribution margin;
(ii) The contribution rate.
(b) Compute the break-even point
(i) In units;
(ii) As a percent of capacity;
(iii) In sales dollars.
(c) Determine the break-even point in sales dollars if fixed costs are increased to $32 200.
(d) Determine the break-even point as a percent of capacity if fixed costs are reduced to $23 808, while variable costs are increased to 60% of sales.
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Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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