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Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit.
Fill in the contribution margin income statement when 730 units are sold:
Byron Manufacturing
Contribution Margin Income StatementSales$Less: Variable costs
Contribution margin$Less: Fixed costs
Operating income$
Problem 1: Calculate Byron Manufacturing's per unit contribution margin : $.
The contribution margin ratio is 50%
Problem 2: Calculating the Break-even Point:
The break-even point in sales dollars is $ which is a break-even point in units of units.
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