Sunn Company manufactures a single product that sells for $225 per unit and whose variable costs are $180 per unit. The company's annual fixed costs are $643,500. (a) Compute the company's contribution margin per unit. Selling price Less: Variable cost $ 225 per unit +180 per unit Contribution margin (b) Compute the company's contribution margin ratio. Numerator: 1 Contribution margin per unit (c) Compute the company's break-even point in units. Numerator: Fixed costs Denominator: = Contribution Margin Ratio = Contribution margin ratio 0 Denominator: = = Break-Even Units Break-even units 0 (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: = Break-Even Dollars = Break-even dollars 0
Sunn Company manufactures a single product that sells for $225 per unit and whose variable costs are $180 per unit. The company's annual fixed costs are $643,500. (a) Compute the company's contribution margin per unit. Selling price Less: Variable cost $ 225 per unit +180 per unit Contribution margin (b) Compute the company's contribution margin ratio. Numerator: 1 Contribution margin per unit (c) Compute the company's break-even point in units. Numerator: Fixed costs Denominator: = Contribution Margin Ratio = Contribution margin ratio 0 Denominator: = = Break-Even Units Break-even units 0 (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: = Break-Even Dollars = Break-even dollars 0
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...
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