Answer correct Sales are $1,000,000 for a product with avariable cost per unit of $6 and a sales price of$20. If fixed costs are $250,000, what is thecontribution margin?

Explanation of Sales Revenue:Sales revenue is the total amount generated from selling goods or…

Answered: Sales are $1,000,000 for a product with…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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1) What level of output would generate a profit of $15,000 if a product sells for $24.99, has unit variable costs of $9.99, and total fixed costs of $55,005?
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Sales are $1,000,000 for a product with a variable cost per unit of $6 and a sales price of $20. If fixed costs are $250,000, what is the contribution margin?