Question
SRT Company sells only one product. The regular selling price is $30 per unit. The entity plans/budgets to sell 600 units. Variable costs are 70%
SRT Company sells only one product. The regular selling price is $30 per unit. The entity plans/budgets to sell 600 units. Variable costs are 70% of this selling price, and fixed costs are $4,500 per month. Use the original data to answer the following questions, except as indicated.
1 What is the variable cost per unit?
2 What is the variable expense ratio?
3 What is the contribution margin ratio?
4 What is the contribution margin per unit?
5 What is the entitys total sales revenue?
6 What is the entitys total variable expense?
7 What is the entitys total contribution margin?
8 What is the entitys total net operating income?
9 How many units need to be sold to break-even?
10 What is the total sales dollars at break-even?
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