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Cost Behavior Analysis at Facebook Values: Fixed Costs: $2,000,000 Variable Costs per Unit: $15 Sales Revenue: $5,000,000 Requirements: Prepare a contribution margin income statement for

Cost Behavior Analysis at Facebook

Values:

  • Fixed Costs: $2,000,000
  • Variable Costs per Unit: $15
  • Sales Revenue: $5,000,000

Requirements:

  1. Prepare a contribution margin income statement for Facebook's advertising division.
  2. Calculate the contribution margin ratio for Facebook.
  3. Determine the breakeven sales volume in units for Facebook.

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