Cost-Volume-Profit Analysis

Bright Corporation manufactures and sells searchlights. Each searchlight sells for $635. The variable cost per unit is $510, and the company's total fixed costs are $775,125.

Requirement 1:

Calculate the company's contribution margin per unit and the contribution margin ratio.

$ and %

Requirement 2:

Calculate the sales in units needed for the company to break even.

Requirement 3:

Calculate the sales in units needed for the company to achieve a target net operating income of $71,875.

Requirement 4:

Calculate the sales in units that would be needed for the company to break even if variable costs increased by $35 per unit.