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Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs amount to $84 per unit. The fixed costs are
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs amount to $84 per unit. The fixed costs are $42,000 per month (round any units to the next highest full unit).
Calculate: (show your calculations and round to 2 decimal places)
- What is the contribution margin per unit?
- What is the contribution margin ratio per unit?
- What is the monthly sales volume (in dollars) at the break-even point?
- How many units must be sold each month to earn a monthly operating income of $40,000?
- What is the monthly margin of safety (in dollars) if 3,000 units are sold each month?
- What will be the monthly operating income if 3,000 units are sold each month?
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