CVP

Austin Automotive sells an auto accessory for $$180$ per unit. The company's variable cost per unit is $$30$ for direct material, $$25$ per unit for direct labor, and $$17$ per unit for overhead. Annual fixed

production overhead is $$59,840,$ and fixed selling and administrative overhead is $$40,384.$

a$.$ What is the contribution margin per unit?

b$.$ What is the contribution margin ratio?

$1\%$

c$.$ What is the break$-$even point in units?

units

d$.$ Using the contribution margin ratio, what is the break$-$even point in sales dollars? $

e$.$ If Austin Automotive wants to earn a before$-$tax profit of $$82,944,$ how many units must the company sell?

units