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Calculate contribution margin per unit

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Reference no: EM132765323

Question - COST - VOLUME - PROFIT ANALYSIS

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

Selling price, $117 per unit (SP)

Variable cost, $78 per unit (VC)

Fixed Cost, $78,000

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 and Dollars.

4. Calculate margin of safety if actual sales are 6,000 units.

5. Draw a Break-even chart using above information.

6. Calculate how many units must be sold to get a profit of $156,000.

Reference no: EM132765323

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