Rubber and Steel Company is planning to manufacture a new product. The variable costs will be $61 per unit and the fixed costs are estimated to be $5904. To be competitive, the selling price of the product is to be $150 per unit. Variable selling expense is expected to be $17 per unit.
For each of the following, perform a break-even analysis showing computation of the
(a) Contribution margin;
(b) Contribution rate;
(c) Break-even point in units;
(d) Break-even point in sales dollars.