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I figure out a and b need help with the rest Calculate the unit variable cost and unit contribution margin. Variable cost= direct material direct
I figure out a and b need help with the rest
- Calculate the unit variable cost and unit contribution margin.
Variable cost= direct material direct labor + variable overhead+ variable selling expenses
3.90+1.40+2.10+1.60= 8.40
Contribution overhead
Selling price- variable cost
20-8.40= 11.6
- Calculate the variable cost ratio and contribution margin ratio.
Total fixed cost = total fixed overhead total fixed selling & administrative expenses
52,000+38,530=90530
1. A company sells a single product for $20 per unit. Unit costs are as follows: Direct materials Direct labor Variable factory overhead Variable selling & administrative expenses $ 3.90 1.40 2.10 1.60 Total fixed factory overhead is $52,000 per year and total fixed selling and administrative expense is $38,530. a) Calculate the unit variable cost and unit contribution margin. b) Calculate the variable cost ratio and contribution margin ratio. c) Compute the break-even point in units. d) Compute the break-even point in dollars. e) Construct a CVP graph to demonstrate the above information. f) Construct a contribution margin income statement at the break-even point to prove your computations. g) NOW assume that the company would like to earn a target profit of $5,500. Now how many units must be sold? What would the required sales be in dollars? h) Using the CVP graph from above, add a point to represent the $5,500 profit. i) Using the contribution margin income statement above, add a column to represent $5,500 in target profitStep by Step Solution
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