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Aldridge, Inc. produces and sells a single product. Unit costs for direct materials and direct labor are $24 and $36, respectively. In March, 20,000
Aldridge, Inc. produces and sells a single product. Unit costs for direct materials and direct labor are $24 and $36, respectively. In March, 20,000 units were produced, and total overhead was $214,000. In April, 26,000 units were produced, and total overhead was $259,000. Selling price of the unit is $100. a. Compute the total fixed overhead of the company. b. Compute the contribution margin ratio. c. Compute the company's break-even point in sales dollars. d. Compute the number of units which must be sold to have net income of $122,000 (ignore income taxes).
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