Question
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are
1.
Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit.
2.
A firm expects to sell 24,800 units of its product at $10.80 per unit and to incur variable costs per unit of $5.80. Total fixed costs are $68,000. The total contribution margin is:
3.
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $86; Z sells for $124. Variable costs for product A are $45; for Z $49. Fixed costs are $518,300. Compute the number of units of Product A McCoy must sell to break even.
4.
A company has fixed costs of $98,800. Its contribution margin ratio is 38% and the product sells for $59 per unit. What is the company's break-even point in dollar sales?
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