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Part 1 of 12 Points: 0 of 1 Save Mi Tierra Driving School charges $450 per student to prepare and administer written and driving
Part 1 of 12 Points: 0 of 1 Save Mi Tierra Driving School charges $450 per student to prepare and administer written and driving tests. Variable costs o $315 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $47,250 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.) 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 $350 per student. C. Decrease variable costs to $225 per student. d. Decrease fixed costs to $40,500. 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 CM per unit - X
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