Question
Malden Corporation has annual fixed costs of $4,000,000, variable costs of $25 per unit and a selling price of $60 per unit. What is Maldens
Malden Corporation has annual fixed costs of $4,000,000, variable costs of $25 per unit and a selling price of $60 per unit. What is Maldens breakeven point in units?
Bluff Corporation has a selling price per unit of $30 and a variable cost per unit of $14. What is Bluffs contribution margin per unit in dollars and what is its contribution margin in percentage terms?
Gideon currently has a fixed annual cost of $2,100,000, variable cost of $42 per unit, and a selling price of $80 per unit. What is Gideons current breakeven point?
Continuing from the prior problem, Gideon is studying the possibility of expanding with a new factory because demand for their product is more than they can service in the old factory. If they proceed with this plan their annual fixed costs will increase to $3,000,000. Their variable cost per unit and selling price per unit will stay the same. What is Gideons new breakeven point with the new factory?
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