Answered step by step
Verified Expert Solution
Question
1 Approved Answer
all parts would be great Parallel Parking Drving School charges $680 per student to prepare and administer wntten and driving tests. Variable costs of $408
all parts would be great
Parallel Parking Drving School charges $680 per student to prepare and administer wntten and driving tests. Variable costs of $408 per student include trainers' wages, study materiais, and gascline. Annual fred costs of $63,920 inctude the training faclity and floet of cars. Read the requirenents. Requirement 1. For each of the following independent shuations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution marpin) Requirements 1. For each of the foliowing independent situations, calculate the contribution margin per unit and the breakeven point in units by frst referring to the onginal dats provided: a. Breakeven point with no change in information. b. Decresse sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decresse fixed costs to $53,040. 2. Compare the impact of charges in the sales price, variable cosis, and fued costs on the contribution margin per unit and the breakeven point in unts Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started