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Wrong Way Driving School charges $1,500 per student to prepare and administer written and driving tests. Variable costs of $900 per student include trainers' wages,
Wrong Way Driving School charges $1,500 per student to prepare and administer written and driving tests. Variable costs of $900 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $390,000 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.) A Requirements X CM per unit Situation a. - = Situation b. Situation c. Situation d. 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 $1,200 per student. c. Decrease variable costs to $750 per student. d. Decrease fixed costs to $282,000. 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. Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) + + = Required sales in units Situation a ( ) + Situation b. ( + = Print Done Situation c. c ( + + Situation d. ( + = Requirement 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. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin when variable costs decrease. The contribution margin 7 when the fixed costs decrease. Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units. The breakeven point when the sales price decreases. The breakeven point when the variable costs decrease. The breakeven point when fixed costs decrease
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