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Country Road Driving School charges $1,000 per student to prepare and administer written and driving tests. Variable costs of $600 per student include trainers' wages,
Country Road Driving School charges $1,000 per student to prepare and administer written and driving tests. Variable costs of $600 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $160,000 include the training facility and fleet of cars. Read the fequirements ..... Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit Situation a. Situation b. Situation c. Situation d. = Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) + = Required sales in units Situation a. + Situation b. + Country Road Driving School charges $1,000 per student to prepare and administer written and driving tests. Variable costs of $600 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $160,000 include the training facility and fleet of cars. Read the fequirements ..... + . Required sales in units Situation a. + - Situation b. + Situation c. + = Situation d. ( + Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. V when the sales price decreases. The contribution margin when variable costs decrease. The contribution margin when The contribution margin the fixed costs decrease. Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units. when the sales price decreases. The breakeven point when the variable costs decrease. The breakeven point when fixed The breakeven point costs decrease. - Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $800 per student. c. Decrease variable costs to $500 per student. d. Decrease fixed costs to $156,000. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Print Done
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