21. Contribution Margin per Unit of Constraint. Paint Toys Company sells paint ball guns for 5100' per unit. Variable cost is $E per unit. Each
21. Contribution Margin per Unit of Constraint. Paint Toys Company sells paint ball guns for 5100' per unit. Variable cost is $E per unit. Each paint ball gun requires 1.25 machine hours and 2.00 direct labor hours to produce. Calculate the contribution margin {a} per unit, lb} per machine hour, and {c} per direct labor hour. 22. Absorption Costing Versus Variable Costing. Describe the difference between absorption costing and variable costing. Which approach yields the highest profit when the units produced are greater than the units sold? Explain. 23. BreakEyen Point and Target Prot Measured in Units [Single Product}. Mellie Company has monthly fixed costs totaling $10U,D and yariable costs of 52C! per unit. Each unit of product is sold for $25. Required: Calculate the contribution margin per unit. Find the breakeyen point in units. How many units must be sold to earn a monthly prot of 540,000? g BreakEven Point and Target Prot Measured in Sales Dollars [Single Product}. Nellie Company has monthly xed costs totaling $1D,UCID and Variable costs of 52C! per unit. Each unit of product is sold for $25 {these data are the same as the previous exercise}: Required: 1. Calculate the contribution margin ratio. 2. Find the breakeyen point in sales dollars. 3. What amount of sales dollars is required to earn a monthly profit of $60,000
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