First year sales for XXX is estimated to be $45,000,000. The average sale price is $45 per unit with the variable expense per unit at $20. This results in a contribution margin of $25 per unit. The sales volume in the first year is estimated to be 1,000,000 units. Estimated fixed costs for the first year are $15,000,000. Using the contribution margin method, estimated losses in the first year will be ($10,000,000).

Given Information: Sales price per unit is $45 Variable expense per unit is $20. Contribution margin per unit is $25 First year sales revenue for XXX is estimated to be $45,000,000. The average sales price is $45 per unit with the variable expense per unit at $20. When will company break even?

Company plans to increase sales 30% every year

Question

First year sales for XXX is estimated to be $45,000,000. The average sale price is $45 per unit with the variable expense per unit at $20. This results in a contribution margin of $25 per unit. The sales volume in the first year is estimated to be 1,000,000 units. Estimated fixed costs for the first year are $15,000,000. Using the contribution margin method, estimated losses in the first year will be ($10,000,000).

Given Information: Sales price per unit is $45 Variable expense per unit is $20. Contribution margin per unit is $25 First year sales revenue for XXX is estimated to be $45,000,000. The average sales price is $45 per unit with the variable expense per unit at $20. When will company break even?

Company plans to increase sales 30% every year

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First year sales for XXX is estimated to be $45,000,000. The average sale price is $45 per unit with the variable expense per unit at

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