Contribution Margin Analysis Clearview Company is a manufacturer of blown glass vases. The following information pertains to Clearview’s 2009 sales:

Required:1. Determine Clearview Company’s per-unit contribution margin and contribution margin ratio.
2. Using the per-unit contribution margin and the contribution margin ratio, compute:

a. The break-even point in sales dollars and units.

b. The sales volume (in dollars and units) needed to generate a target income of $75,000.
3. Using the equation approach of C-V-P analysis, compute:

a. The break-even point in sales dollars and units.

b. The sales volume (in dollars and units) needed to generate a 15% return on sales.

Transcribed Image Text:

Sales price per unit Variable costs per unit Total fixed costs 65 52 500,000