Calculate the contribution margin per unit

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Reference no: EM132912095

Problem - The Waldo Company had the following data for 2011:

Sales ($20 X 20,000 units) $400,000

Variable cost $240,000

Fixed cost $100The Waldo Company had the following data for 2011:

Sales ($20 X 20,000 units) $400,000

,000

Operating income $60,000

Required -

A. Calculate the contribution margin per unit.

B. What is the break-even point in units?

C. What is the amount of sales in units needed to obtain an operating income of $40,000?

D. What is the margin of safety in units, assuming operating income is $80,000?

Reference no: EM132912095

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