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Calculate the contribution margin per unit

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Reference no: EM132618885

Question - Kiwi Company sells several products. Information of average revenue and costs are as follows:

Selling price per unit $30.00

Direct materials $14.00

Direct manufacturing labor $6.00

Annual fixed costs $,154,000

Required -

1. Calculate the contribution margin per unit, break-even per unit and also calculate the number of units Kiwi's must sell to yield a profit of $25,000.

2. State and explain the assumption of CVP analysis.

Reference no: EM132618885

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