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XYZ Company is a retailer of widgets. XYZ pays $4.10 for each widget and sells them for $8.50. Monthly fixed costs are $31,240. The widget cost is the only variable cost.

a.

What is the contribution margin per unit?

Contribution margin $per unit
b. What is the break-even point in units?
Break-even point units
c.

How many units will XYZ need to sell to earn target profit of $29,480?

Total number of units

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9798237

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