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Fixed expenses are $85,000.00 and variable expenses are $1.20 per unit. Selling price is 2.00 per unit.

problems.

1) Compute the contriubtin margin per unit and contribution margin ratio (I figured it out)

Contriubtion Margin per unit .80/ sales per unit 2.00= 40% Contribution Margin Ratio

2) Find break even point in units and dollars. Instructor provided formulas below but I could not figure out operating income to find out break even for units or dollars.

Breakeven Sales in Units = Fixed Expenses + Operating Income divided by Contribution Margin per unit

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M943529

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