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Calculate break-even point sales of units

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Reference no: EM133076852

Question - Barbara Company has the following information for a project in which they expect to sell 20,000 units:

Sales price $200 per unit

Direct Material $50 per unit

Direct Labour $30 per unit

Variable Overhead $25 per unit

Sales Commission 7.5% of sales

Fixed Overhead $1,000,000

Calculate the following. You must use formulas and show all your work to receive marks. Label your answers clearly. Requirements are worth 3 marks each for a total of 15 marks

1. Calculate the contribution margin ratio.

2. Calculate break-even point sales of units.

3. Calculate break-even point in dollars.

4. Calculate the margin of safety in units.

5. Calculate the margin of safety in dollars.

Reference no: EM133076852

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