Calculate contribution margin per unit

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Question

A. Robest Industries produces only one product. The following revenues and cost have been estimated for the forthcoming month:

Selling price, $ 250 per unit (SP)

Variable cost, $ 100 per unit (VC)

Fixed Cost, $ 56000

The managers of the firm wish to know the following:

1. Calculate contribution margin per unit

2. Calculate contribution margin ratio.

3. BEP in units

4. Calculate BEP in sales.

B. Good Managers must not only be able to understand the conceptual underpinnings of cost behaviour, but they must also be able to apply those concepts to real world data that do not always behave in the expected manner. Explain cost behaviour analysis.

Reference no: EM132331460

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