Calculate contribution margin on per unit basis

Assignment Help Financial Management

Reference no: EM131933654

Given the following information [daily basis] on a manufacturing company, calculate (a) contribution margin on a per unit basis, (b) contribution margin on a total dollar basis, and (c) fixed costs.

Average selling price for manufacturer’s product = $5.00

Daily Break-even level [units] = 10,000

Variable cost per unit = $0.50

Assume that the variable cost per unit in the previous problem = standard cost per unit and that daily break-even level of units = amount actually purchased. If the actual cost per unit at the time of purchase increases 10%, what is the variance for total variable cost? Is financial impact positive or negative?

Reference no: EM131933654

Questions Cloud

Uses standard costing system with the standards : Sammy Corp manufactures helmets. Sammy uses a standard costing system with the following standards. What is the Direct Materials Price Variance ?

Discuss the nature of each curve and the reasons for shape : Eddie, who is a risk-neutral investor; and Ozzie, who is a risk-loving investor. Discuss the nature of each curve and the reasons for its shape.

What is the probability that the stock quadruples : What is the probability of bankruptcy? What is the probability that the stock quadruples?

Remodeling and expansion project : Home Place Hotels, Inc., is entering into a 3-year remodeling and expansion project.

Calculate contribution margin on per unit basis : Calculate contribution margin on a per unit basis, contribution margin on total dollar basis, and fixed costs.

What would be the sharpe ratio of strategy : What would be the Sharpe ratio of a strategy that invests 50% into your strategy and 50% into my strategy?

What will be the amount of each monthly repayment : Jason and Mary purchase a house for $550,000. They obtain a home loan for 80% of the purchase price. What will be the amount of each monthly repayment?

Each of these approaches have strength and weaknesses : Each of these approaches have strength and weaknesses. Discuss the strength and weakness of these approaches.

What is the initial investment outlay for project : Jefferson Industries is considering an expansion. What is the initial investment outlay for this project?

User Account

All Pages