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You have the following information after producing 50,000 units: 1) You sell your product for $100 per unit. 2) Direct Materials were $1,000,000 3) Direct
You have the following information after producing 50,000 units:
1) You sell your product for $100 per unit.
2) Direct Materials were $1,000,000
3) Direct Labor was $1,500,000
4) Variable Overhead was $600,000
5) Fixed Overhead was $1,250,000
1. Based on this data, what is your total Contribution Margin?
2. Based on this data, what is your total Operating Income?
3. Based on this data, what is your Variable Cost per Unit?
4. Based on this data, if the company is targeting an Operating Income of $2,550,000 how many units would they need to sell?
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