Question
Brandon Manufacturing provides the data below relating to its single product for 2020: Selling price per unit $20 Annual fixed costs $280,800 Variable costs per
Brandon Manufacturing provides the data below relating to its single product for 2020:
Selling price per unit $20
Annual fixed costs $280,800
Variable costs per unit $14
Annual sales volume expected in 2020: 52,000 units
1.Contribution margin per unit
2.Contribution margin ratio
3.Breakeven point in units
4.Breakeven point in sales dollars
5.Firm's profit if 46,800 units are sold
6.Firm's profit if 52,000 units are sold
7.Break even point (in units) if variable costs decreased by $2 per unit
8.Using the original data, what is the Break even point (in units) if variable costs increased by $2 per unit (from the original cost) and fixed costs decreased by $100,000 (from the original cost)
9.What would be the expected profit in 2020 if fixed costs increased by $20,000?
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