Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fred manufactures lamp shade the selling price of which is $80 per unit. The variable cost of the product is $ 50. The fixed costs

Fred manufactures lamp shade the selling price of which is $80 per unit. The variable cost of the product is $ 50. The fixed costs are 3,000,000. Fred is presently selling 110000 units

Instructions

a. What is the contribution margin per unit?

b. What is the contribution Margin ratio?

c. What is Freds break-even in units?

d. What is the margin of safety?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Michael Parkin

6th Edition

0321112075, 9780321112071

More Books

Students also viewed these Accounting questions

Question

It would have cost more to complain.

Answered: 1 week ago