Country Road Driving School charges $$250$ per student to prepare and administer written and driving tests. Variable costs of $$100$ per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $$75,000$ include the training facility and fleet of cars.

Read the requirements.

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.$)$

$\backslash$table$[[,$Net sales revenue per unit,,Variable costs per unit,$=,$CM per unit,$],[$Situation a$,$$$,250,-$$$,100,=$$$,150],[$Situation b$.,$$$,200,-$$$,100,=$$$,100],[$Situation c$.,$$$,250,-$$$,50,=$$$,200],[$Situation d$.,$$$,250,-$$$,100,=$$$,150]]$

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.$)$

$\backslash$table$[[,1,$Fixed costs,$+,$Target profit,$),$CM per unit,$=$ Required sales in units,nts$],[$Situation a$.,(,,+,,1,,=,]]$

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 $$200$ per student.

c$.$ Decrease variable costs to $$50$ per student.

d$.$ Decrease fixed costs to $$60,000.$

Compare the impact of changes in the sales price, variable costs, and fixed

et more help

costs on the contribution margin per unit and the breakeven point in units.