Question
ABC Company reports the following contribution margin income statement. ABC COMPANY Contribution Margin Income Statement for Year Ended December 31 Sales (9,600 units at $225
ABC Company reports the following contribution margin income statement. ABC COMPANY Contribution Margin Income Statement for Year Ended December 31
Sales (9,600 units at $225 each) $2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Income $ 108,000
If the company raises its selling price to $240 per unit.
1. Compute ABC Company's contribution margin per unit. 2. Compute ABC Company's contribution margin ratio. 3. Compute ABC Company's break-even point in units. 4. Compute ABC Company's break-even point in sales dollars.
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