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Can you explain this to me ? I have no idea how to do this. Thanks. Cost-Volume Profit Analysis Recline Company is planning to produce
Can you explain this to me I have no idea how to do this. Thanks.
Cost-Volume Profit Analysis Recline Company is planning to produce and sell 10,000 units of its only product at a unit price of $120. At this sales level Recline Company will generate $456,000 in total contribution margin and incur fixed costs of $25/unit. a. Calculate Recline's contribution margin ratio. Round answer to the nearest whole percentage (ex: 0.3456 = 35%) 38 % b. Calculate the break-even point in sales dollars for Recline. Use your rounded answer from part a. above and then round final answer to the nearest dollar. $ 657,895
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