Question
Ahmed company sells several products info as follow: Selling price per unit 20.00$ Variable cost per unit is including: Direct material per unit 4.00$ Direct
Ahmed company sells several products info as follow:
Selling price per unit 20.00$
Variable cost per unit is including:
Direct material per unit 4.00$
Direct manufacturing labor per unit. 1.00$
Variable manufacturing cost per unit. 1.00$
Variable selling costs per unit. 2.00$
Total annual fixed costs. 96,000$
Question:
1- Calculate the contribution margin per unit and the contribution margin ratio ?
2- calculate the breakeven point in total sales dollars and the number of units Amed must sell each day to break even.
3- calculate the number of units Ahmed must sell to have a profit of 144,000$
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