Calculate contribution margin per unit

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Reference no: EM131510678

A company recently reported 400,000 units sold at a price of $60.00 per unit. It also reported its total variable operational costs to manufacture these products were: Materials ($2,400,000), Packaging ($2,000,000), Direct Labor ($1,800,000), Transportation/Delivery ($1,400,000) and other ($100,000). There were other cost including: Advertising ($2,000,000), promotion ($800,000) and General and Administrative Overhead including profit ($600,000).

Prepare the company's financial statement and complete the calculations, including formula

a. Income Statement

b. Calculate Contribution Margin $ per unit and Contribution Margin as a % of sales

c. Assume you expect materials costs to increase by 5.0 % of unit price, what would be the new Breakeven Sales per unit figure?

Reference no: EM131510678

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