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Question 2: Contribution Margin 15 points Commomnaya sells only one product below are the relevant information of the company Selling price is $55.00 per unit
Question 2: Contribution Margin 15 points Commomnaya sells only one product below are the relevant information of the company Selling price is $55.00 per unit Contribution Margin 20% Fixed costs are $11,000 per month. Management increases the selling price to $80 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. 1. Refer to the above data. At the original selling price of $55 per unit, what is the variable cost per unit? 2... Refer to the above data. At the original selling price of $55 per unit, how many units must Commomnaya sell to break even? 3. Refer to the above data. At the original selling price of $55 per unit, what dollar volume of sales per month is required for Commomnaya to earn a monthly operating income of $20,000? 4... Refer to the above data. At the increased selling price of $80 per unit, what is the contribution margin ratio? 5. Refer to the above data. At the increased selling price of $80 per unit, what dollar volume of sales per month is required to break even? (Round to whole number)
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