Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells for P160 per unit. Variable costs are P104 per unit, and fixed costs total P1,568,000 annually. The company sold 35,000 units during the current year. Required: 1. Unit contribution margin, contribution margin ratio, and variable cost ratio.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells for P160
per unit. Variable costs are P104 per unit, and fixed costs total P1,568,000 annually. The company sold 35,000
units during the current year.
Required:
1. Unit contribution margin, contribution margin ratio, and variable cost ratio.
Transcribed Image Text:Contribution margin, breakeven point, margin of safety. Dianne Company makes a product that sells for P160 per unit. Variable costs are P104 per unit, and fixed costs total P1,568,000 annually. The company sold 35,000 units during the current year. Required: 1. Unit contribution margin, contribution margin ratio, and variable cost ratio.
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