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Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $42. $ 14 per unit 4 per
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $42. $ 14 per unit 4 per unit Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative $169,000 per year $135,800 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $196,800. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,100 units, how much could it pay in salaries for salespeople and still have a profit of $196,800? (Hint: Use the equation method.) | $ a. Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars c. Fixed cost of salaries 12,700 533,400 20,900 877,800 $
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