Question
Contribution Margin United Merchants Company sells 23,000 units at $46 per unit. Variable costs are $34.96 per unit, and fixed costs are $137,100. Determine (a)
Contribution Margin
United Merchants Company sells 23,000 units at $46 per unit. Variable costs are $34.96 per unit, and fixed costs are $137,100.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
a. Contribution margin ratio (Enter as a whole number.) | % | |
b. Unit contribution margin (Round to the nearest cent.) | $ | per unit |
c. Income from operations | $ |
2)
Target Profit
Outdoors Company sells a product for $175 per unit. The variable cost is $90 per unit, and fixed costs are $365,500.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $76,755.
a. Break-even point in sales units | units | |
b. Break-even point in sales units required for the company to achieve a target profit of $76,755 | units |
3)
Sales Mix and Break-Even Analysis
Michael Company has fixed costs of $522,240. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.
Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
Model 94 | $360 | $180 | $180 | ||||||
Model 81 | 280 | 180 | 100 |
The sales mix for products Model 94 and Model 81 is 35% and 65%, respectively. Determine the break-even point in units of Model 94 and Model 81 of the overall (total) product, E. If required, round your answers to the nearest whole number.
a. Product Model 94 units b. Product Model 81 units
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