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.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22b0e950-0a05-473a-a6ab-863a46d173d2%2Fcaf65c2c-440f-4460-91ab-70140c986285%2Fodexayh_processed.jpeg&w=3840&q=75)
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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