Wasabi Corp has a contribution margin ratio of 45 percent Product selling price per unit is $320, and total xed costs per year are $2,385,360 Required (a) Using the contribution margin ratio, what is the break even point for Wasabi Corp (b) What is the products variable cost ratio What is the produ...

a BEP FC CM Ratio BEP 2385360 45 5300800 b VC Ra ...

Wasabi Corp. has a contribution margin ratio of 45 percent. Product selling price per unit is $320,

Question:

Wasabi Corp. has a ratio of 45 percent. Product selling price per unit is $320, and total ﬁxed costs per year are $2,385,360.
Required:
(a) Using the ratio, what is the break-even point for Wasabi Corp.?
(b) What is the product’s variable cost ratio? What is the product’s total variable cost per unit?
(c) Use two different ways to calculate how many units Wasabi Corp. needs to sell to break even.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...