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Example: Product A Selling price per unit Variable expense per unit Fixed expenses Targeted net income $75 $45 $210,000 $126,000 Contribution Margin per unit Selling

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Example: Product A Selling price per unit Variable expense per unit Fixed expenses Targeted net income $75 $45 $210,000 $126,000 Contribution Margin per unit Selling price per unit Variable expense per unit Contribution Margin per unit $75 45 $30 Contribution ratio 40% Break-even Units Sales 7,000 $525,000 Targeted net income Units Sales 11,200 $840,000 Conribution Margin Income statement Units Break-even 7,000 Target 11,200 Sales Variable expenses Contribution margin Fixed expenses Net operating Income $525,000 $840,000 315,000 504,000 210,000 336,000 210,000 210,000 $0 $126,000 Product Information Product B Selling price per unit Variable expense per unit Fixed expenses Targeted net income $60 $35 $123,000 $55,000 Product C Selling price per unit Variable expense per unit Fixed expenses Targeted net income $8 $5 $257,000 $90,000 Answer B and C questions in the form of the given example A

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