Homework Answers
Given
Sale price per unit – 220
variable cost per unit = 154 per unit
Fixed cost = 930600
A ) Contribution per unit = selling price – variable cost = 220 - 154 = 66
B) Contribution margin ratio = ( contribution / sale price )*100
= (66/220)*100
= 30 %
C) Break even point in units = fixed cost / contribution per unit
= 930600 / 66 = 14100 units
D) Break even point in dollars = fixed cost / Contribution margin ratio
= 930600 / 30%
= 3102000
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