#2
A company's product sells for $450 per unit. Variable cost is
$290 per unit. Fixed costs are $320,000 per month. Using the
Contribution Margin approach, calculate how many units need
to be sold to break even and the breakeven sales dollars.
#3
April Manufacturers produces decor material. Fixed costs are
$5,000 per month. Sales price for one unit of product is $50,
and the variable cost per unit is $30. If April wishes to earn an
operating income of $10,000, how many units need to be sold
and what is this company's contribution margin per unit?