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A company provides the following information: Number of Units Sold Sales Price Variable Cost per Unit Depreciation on Manufacturing Facility Sales Commission per Unit Depreciation
A company provides the following information: Number of Units Sold Sales Price Variable Cost per Unit Depreciation on Manufacturing Facility Sales Commission per Unit Depreciation on Sales Office Building 1,500 units $60 per unit $24 per unit $7,000 $4 per unit $5,800 Based on this information, calculate the following: 1) Total Contribution Margin $48,000 2) Break-Even Point in Units 400 units 3) At the current level of sales, what is the Margin of Safety in Units 1,100 units 4) If the company wishes to earn a target profit of $9,600, how many units would need to be sold? 700 units
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