Question
Determine the contribution margin ratio and break-even point in units. Item Amount Selling price per unit $100 Variable cost per unit $60 Fixed costs $200,000
Determine the contribution margin ratio and break-even point in units.
Item | Amount |
Selling price per unit | $100 |
Variable cost per unit | $60 |
Fixed costs | $200,000 |
Requirements:
Calculate the contribution margin per unit and contribution margin ratio.
Determine the break-even point in units and sales dollars.
Discuss how changes in selling price or variable costs impact the break-even point.
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
12th edition
132552620, 978-0132552622
