Cost Behavior and Decision Making (Manufacturing Company)

Item	Amount
Selling price	$60/unit
Variable cost	$30/unit
Fixed costs	$150,000
Expected sales	8,000 units

• Requirements:
  • Calculate the contribution margin per unit and total contribution margin.
  • Determine the break-even point in units and sales dollars.
  • Recommend pricing strategies to achieve a target profit of $100,000.