Mi Tierra Driving School charges $900 per student to prepare and administer written and driving tests....
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Mi Tierra Driving School charges $900 per student to prepare and administer written and driving tests. Variable costs of $450 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $175,500 include the training facility and fleet of cars. Read the requirements. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) Variable costs per unit Net sales revenue per unit Situation a. CM per unit Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $750 per student. c. Decrease variable costs to $360 per student. d. Decrease fixed costs to $153,000. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Print Done Mi Tierra Driving School charges $900 per student to prepare and administer written and driving tests. Variable costs of $450 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $175,500 include the training facility and fleet of cars. Read the requirements. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) Variable costs per unit Net sales revenue per unit Situation a. CM per unit Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $750 per student. c. Decrease variable costs to $360 per student. d. Decrease fixed costs to $153,000. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Print Done
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