Step 1 Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question and specify the other subparts (up to 3) you’d like answered. Break-even point is a situation of no profit and no loss. The total cost of the product is equal to the total sales at this level of units. Break-even sales are calculated by multiplying the sales price with the break-even units. The contribution margin is calculated by deducting the amount of variable expenses from the sales of the company. arrow_forward Step 2 (1) Break-even point in units: 105,000 Fixed cost: $351,300 Variable cost per unit: $0.30 Break-even sales are calculated as follows: Selling price per unit is calculated as follows: arrow_forward Step 3 (2) Number of units: 16,300 Selling price per unit: $119 Variable cost is calculated as follows: Variable cost per unit is calculated as follows: arrow_forward Step 4 Contribution margin ratio is calculated as follows: arrow_forward Step 5 (3) Revenue: $231,000 Operating income: $27,720 Contribution margin ratio: 0.3 Contribution margin is calculated as follows: Fixed cost is calculated as follows:
Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.
Break-even point is a situation of no profit and no loss. The total cost of the product is equal to the total sales at this level of units. Break-even sales are calculated by multiplying the sales price with the break-even units.
The contribution margin is calculated by deducting the amount of variable expenses from the sales of the company.
(1)
Break-even point in units: 105,000
Fixed cost: $351,300
Variable cost per unit: $0.30
Break-even sales are calculated as follows:
Selling price per unit is calculated as follows:
(2)
Number of units: 16,300
Selling price per unit: $119
Variable cost is calculated as follows:
Variable cost per unit is calculated as follows:
Contribution margin ratio is calculated as follows:
(3)
Revenue: $231,000
Operating income: $27,720
Contribution margin ratio: 0.3
Contribution margin is calculated as follows:
Fixed cost is calculated as follows:
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