Homework Answers
a. Contribution Margin per unit = Selling Price per unit - Variable cost per unit
= $ 172 - $ 87
= $ 85
Hence the correct answer is
| Contribution Margin | $ 85 | per unit |
b. Number of units to be sold to Break Even =Fixed cost /Contribution Margin per unit
= $ 527,000 / $ 85
= 6,200 units
Hence the correct answer is 6,200 Units
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