Break-even Calculations. The Best Company produces a single product to sell for $10 per unit. The company

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Break-even Calculations.

The Best Company produces a single product to sell for $10 per unit. The company incurs

$36,000 in fixed costs, and variable costs run $4 per unit.

Required:

a. Compute the contribution margin per unit.

b. Compute the break-even point in (1) units, and (2) sales dollars.

c. What would the total sales dollars have to be to produce a net income of $3,000?

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Cost Accounting A Decision Emphasis

ISBN: 9780873939126

4th Edition

Authors: Germain B. Boer, William L. Ferrara, Debra C. Jeter

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