With the following infromation: 1. Compute the contribution margin. Contribution Margin = Selling price per unit -
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Question:
With the following infromation:
1. Compute the contribution margin. |
Contribution Margin = Selling price per unit - Variable Cost |
Variable Cost = $1,500+$30,000+$3,000+$6,000 = $40,500 |
Contribution Margin =(12000*18) - 40,500= 175,500 |
2. Compute the contribution margin ratio. |
Contributuion Margin Ratio= (Contribution Margin/Sales price per unit)*100 |
Contributuion Margin Ratio = (175,000 /216,000)*100 = 81.25% |
, please help me to compute the break-even in sales units, the break-even in sales dollars and the margin of safety in units.
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