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40 20 Sales Price Per Unit Variable Cost Per Unit Fixed Costs Target Profit 20,000 500,000 a. What is the per unit contribution margin? b.
40 20 Sales Price Per Unit Variable Cost Per Unit Fixed Costs Target Profit 20,000 500,000 a. What is the per unit contribution margin? b. What is the contribution margin ratio? C. Compute the break-even point in units. d. What is the break-even in sales dollars e. How many units do we need to sell to earn a target profit of $500,000 f. If the current units sold are 5,000. Determine margin of safety in units. Short Answer 2 Points per blank-30 Points Determine if the cost is fixed, mixed or variable- 2000 3000 Fixed/Variable/Mixed Units Cost A Cost B Cost C Cost D Cost E Cost F $1,235 $2,000 $4,000 4,000 2,000 2,485 $3,705 $3,000 $4,000 12,000 2,000 3,620 L Give an example of a cost leadership Company Give an example of a differentiated Company Label as Fixed or Variable a. Sales commissions per unit sold b. Packaging costs - per unit sold C. Wages caf server d. Salaries of software developers e Wages of telephone order assistants f. President's salary g. Packing Cost - flat rate
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