Viva sells its waterproof phone case for $85 per unit. Fixed costs total $102,000, and variable costs are $34 per unit. (1) Determine the contribution margin per unit. Contribution margin (2) Determine the break-even point in units. Numerator: 1 1 per unit per unit per unit Denominator: Break Even Units Break even units 0

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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Viva sells its waterproof phone case for $85 per unit. Fixed costs total $102,000, and variable costs are $34 per unit.
(1) Determine the contribution margin per unit.
Contribution margin
(2) Determine the break-even point in units.
Numerator:
1
1
per unit
per unit
per unit
Denominator:
II
=
Break Even Units
Break even units
0
Transcribed Image Text:Viva sells its waterproof phone case for $85 per unit. Fixed costs total $102,000, and variable costs are $34 per unit. (1) Determine the contribution margin per unit. Contribution margin (2) Determine the break-even point in units. Numerator: 1 1 per unit per unit per unit Denominator: II = Break Even Units Break even units 0
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