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B&B produces and sells one single product: BT5. The production capacity of B&B is 80,000 units. Annual sales volume expected in 2021 is 68,000 units.

B&B produces and sells one single product: BT5. The production capacity of B&B is 80,000 units. Annual sales volume expected in 2021 is 68,000 units.

The following information is estimated for 2021: selling price per unit: $48, variable cost per unit: $36, and annual fixed costs: $420,000.

  1. What is the available production capacity?
  2. What is the contribution margin per unit?
  3. What is the contribution margin ratio?

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