Total fixed costs Sale price per unit Variable costs per unit $15,000 $23 $15

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Total fixed costs
$15,000
$23
Sale price per unit
Variable costs per unit $15
Refer to the numbers above. Assuming 10,000 units are sold, what is
the contribution margin in dollars?
Refer to the numbers above. If sales revenue per unit increases to $25
and 10,000 units are sold, what is the contribution margin in dollars?
Refer to the numbers above. If sales revenue per unit decreases to $18
and 15,000 units are sold, what is the operating income or loss in
dollars?
Transcribed Image Text:Total fixed costs $15,000 $23 Sale price per unit Variable costs per unit $15 Refer to the numbers above. Assuming 10,000 units are sold, what is the contribution margin in dollars? Refer to the numbers above. If sales revenue per unit increases to $25 and 10,000 units are sold, what is the contribution margin in dollars? Refer to the numbers above. If sales revenue per unit decreases to $18 and 15,000 units are sold, what is the operating income or loss in dollars?
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