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Protest Industries produces only one product. The following revenues and cost have been estimated for the forthcoming month:
Selling price, $ 217 per unit (SP)Variable cost, $ 178 per unit (VC)Fixed Cost, $ 79,000
The managers of the firm wish to know the following:
Question 1: Calculate contribution margin per unit
Question 2: Calculate contribution margin ratio.
Question 3: BEP in units
Question 4: Calculate BEP in sales.
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$6,000 per month and their product that sells for $200 has a contribution margin ratio of 30%), how many units must they sell in order to break even?
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During September, Sanchez completed 90,000 units. The 40,000 units in ending inventory were, on average, 40 percent complete. Prepare a production cost report such as the one in Exhibit 2.10 using FIFO.
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