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Calculate contribution margin ratio

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Reference no: EM132780561

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

Fixed Cost, $ 78,000

COST - VOLUME - PROFIT ANALYSIS Selling price, $ 117 per unit (SP)

Variable cost, $ 78 per unit (VC)

The managers of the firm wish to know the following:

Question 1: Calculate contribution margin per unit

Question 2: Calculate contribution margin ratio.

Question 3: BEP in units and Dollars

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

Question 5: Arrange a Break-even chart using above information

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

Reference no: EM132780561

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