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APPLY THE CONCEPTS: Calculate the break - even point in sales dollars for Martin Computing Contribution Margin per Unit , = : x , x
APPLY THE CONCEPTS: Calculate the breakeven point in sales dollars for Martin Computing Contribution Margin per Unit : $ Contribution Margin Ratio BreakEven Point Sales Dollars $ Units Sold BreakEven Point units Assume that the number of units that Martin sold exceeded the breakeven point by one How much would operating income be $ What would operating income be if the units sold exceeded the breakeven point by five units? $ Feedback V Check My Work Use the data along with the formulas introduced in the previous section to compute Contribution Margin per Unit and Contribution Margin Ratio. The change in Contribution Margin with sales volume will then be equal to the Contribution Margin per Unit times the unit change. The CostVolumeProfit Graph Therefore, the slope of the total costs line is equal to the unit variable cost The breakeven point exists at the point where the two lines intersect
APPLY THE CONCEPTS: Calculate the breakeven point in sales dollars for Martin Computing
Contribution Margin per Unit :
$
Contribution Margin Ratio
BreakEven Point Sales Dollars $
Units Sold BreakEven Point units
Assume that the number of units that Martin sold exceeded the breakeven point by one
How much would operating income be
$
What would operating income be if the units sold exceeded the breakeven point by five units?
$
Feedback
V Check My Work
Use the data along with the formulas introduced in the previous section to compute Contribution Margin per Unit and Contribution Margin Ratio.
The change in Contribution Margin with sales volume will then be equal to the Contribution Margin per Unit times the unit change.
The CostVolumeProfit Graph
Therefore, the slope of the total costs line is equal to the unit variable cost The breakeven point exists at the point where the two lines intersect
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