Country road driving school charges $500 per student to prepare and administer written and driving tests. variable cost of $150 per student include trainers wages study materials and gasoline. annual six cost of $140,000 include the training facility and fleet of cars.

for each of the following independent situation calculate the contribution margin per unit and the break even 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.

a. Break even point with no change in information.

b. decrease sales price to $250 per student.

c. decrease variable cost to $100 per student.

d. decrease fixed costs to $122,500.