Austin automotive sells an auto accessory for 180 per unit

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Reference no: EM13586790

Austin Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240.

a. What is the contribution margin per unit?

b. What is the contribution margin ratio?

c. What is the break-even point in units?

d. Using the contribution margin ratio, what is the break-even point in sales dollars?

e. If Austin Automotive wants to earn a pre-tax profit of $51,840, how many units must the company sell?

Reference no: EM13586790

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