Question
CVP ANALYSIS Unreal Bikes produce mountain bicycles and sells it at $1,500 per bicycle. This year's fixed cost totals $525,000. The variable cost per bicycle
CVP ANALYSIS
Unreal Bikes produce mountain bicycles and sells it at $1,500 per bicycle. This year's fixed cost totals $525,000. The variable cost per bicycle is $1,000.
Required:
- Calculate the contribution margin per unit.
- Calculate the break-even point in bikes.
- How many bikes would the business need to sell in the coming year in order to make $900,000 profit?
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
