Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Austin Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit
Austin Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $74,800, and fixed selling and administrative overhead is $50,480. a. What is the contribution margin per unit? $ 0 b. What is the contribution margin ratio? 0 c. What is the break-even point in units? 0 % units d. Using the contribution margin ratio, what is the break-even point in sales dollars? $ 0 e. If Austin Automotive wants to earn a pre-tax profit of $103,680, how many units must the company sell? 0 units
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