Question
B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.
B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.
The following information is estimated for 2021: selling price per unit: $25, variable cost per unit: $16, and annual fixed costs: $324,000.
- What is the available production capacity?
- What is the contribution margin per unit?
- What is the contribution margin ratio?
- What is the break-even-point (BEP) in units and dollars?
- Prepare a contribution margin income statement for the expected sales in 2021.
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Using Microsoft Excel And Access 20 For Accounting
Authors: Glenn Owen
5th Edition
133751229X, 9781337512299
