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I redid everything and got this as answers a) $12 b) $8,333.33 c) 0.6 or 60% d) 166,666.66 e) $2,4000 I think i got a,c,
I redid everything and got this as answers
a) $12
b) $8,333.33
c) 0.6 or 60%
d) 166,666.66
e) $2,4000
I think i got a,c, and e correct but i am confused with b and d. I am confused whether break even is Total FIxed cost/ CM or is it Fixed Cost/ CM.Could you write down the answer with explanation for a-e?
Problem #2. Chilton, Inc. sold i 1,000 units last year for $20 each. Varia* costs per unit were $4 for direct materials, $1.50 for direct labor, and $2.50 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs Pru A. What is the contribution margin per unit? 176,000 B. What is the break-even point in units? 2 lo 250 JoZ 16,000 C. What is the contribution margin ratio? 20% 11r D. What is the break-even point in dollars? ob s 125,000 E. If sales increase by 2,000 units, by how much will profits increaseStep by Step Solution
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