Calculate contribution margin of the product

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Reference no: EM1367207

1 Ann Page Corporation has fixed expenses of $30,000 per year. Variable expenses per unit are $17. Sales price per unit is $30.
a) What is the contribution margin of the product?

b) Calculate the breakeven point in unit sales and dollars.

c) What is the operating profit (loss) at:
i) 1,500 units per year?

ii) 3,600 units per year?

d) Plot a breakeven chart using the foregoing figures.

2 Mrs. Jones owns 100 shares of stock in Daimler-Benz valued at 16.5 Euros per share. What is the value in $U.S. of her stock if:
a) 0.90 ? = $1

b) 0.70 ? = $1

c) 1.20 ? = $1

3 John is planning on purchasing his German dream car for 65,000 Euros How much does he need in $U.S. if there are 0.98 Euros to the $U.S.?

Reference no: EM1367207

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