Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000.
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Information concerning a product produced by Ender Company appears here:
Sales price per unit | $ | 174 | |
Variable cost per unit | $ | 76 | |
Total annual fixed manufacturing and operating costs | $ | 656,600 | |
Required
Determine the following:
- Contribution margin per unit.
- Number of units that Ender must sell to break even.
- Sales level in units that Ender must reach to earn a profit of $245,000.
- Determine the margin of safety in units, sales dollars, and as a percentage.
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