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Which formula correct represents the contribution margin ratio. Sales price per unit - Variable cost per unit Cost of Goods Sold / Net Income Gross
Which formula correct represents the contribution margin ratio. Sales price per unit - Variable cost per unit Cost of Goods Sold / Net Income Gross profit / Sales Estimated Overhead/ Total direct labor Contribution margin / Sales Expedite Delivery Company currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are \$75,000 per month. a) Compute the break-even point in number of units units b) Compute the break-even point in sales dollars $ Original facts: Expedite Delivery Company currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are $75,000 per month. Requirement: Compute the break-even point in units and sales dollars if the fixed costs decrease to $60,000 from what is listed above in the original facts. a) Compute the break-even point in number of units units b) Compute the break-even point in sales dollars $
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