Contribution Margin

Harry Company sells 37,000 units at $41 per unit. Variable costs are $26.24 per unit, and fixed costs are $300,400.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.

a. Contribution margin ratio (Enter as a whole number.)		%
b. Unit contribution margin (Round to the nearest cent.)	$	per unit
c. Operating income	$

Break-Even Point

Sheridan Inc. sells a product for $51 per unit. The variable cost is $24 per unit, while fixed costs are $78,732.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $60 per unit.

a. Break-even point in sales units	units
b. Break-even point if the selling price were increased to $60 per unit	units