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A company sells a single product with the following details: Selling price per unit: $40 Variable cost per unit: $25 Fixed costs: $75,000 Requirements: Calculate
A company sells a single product with the following details:
- Selling price per unit: $40
- Variable cost per unit: $25
- Fixed costs: $75,000
Requirements:
- Calculate the contribution margin per unit.
- Determine the contribution margin ratio.
- Compute the break-even point in units.
- If the company wants to achieve a target profit of $30,000, how many units must it sell?
- Calculate the operating leverage at the break-even point.
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