Question
Paperback Hard Bound Sale Price per Unit $11.00 $19.00 Variable Cost per Unit $5.00 $11.00 Contribution Margin Per Unit Sales Mix 75% 25% Fixed Costs
Paperback Hard Bound Sale Price per Unit $11.00 $19.00 Variable Cost per Unit $5.00 $11.00 Contribution Margin Per Unit Sales Mix 75% 25% Fixed Costs = $78,000 Complete the table above and answer the following: What is the weighted-average contribution margin per unit? _______ What is the breakeven point in terms of units? ____________ The following data pertains to Tric Money, LLC Sales (5,000x$50) = $250,000 Variable Cost (5,000x$30) 150,000 Contribution Margin 100,000 Fixed Costs -60,000 Net Income 40,000 What is the Degree of Operating Leverage? = ________ If the company wanted net income to reach $55,000, by what percentage must sales increase? ______________ Explain how absorption costing can result in overproduction.
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