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Question - Use the following information to answer questions
Sale Revenue (1,000 units x $400 per unit) $400,000
Variable Cost per unit (1,000 units x $200 per unit) 200,000
Contribution Margin 200,000
Fixed Costs 110,000
Income $ 90,000
Required -
1. Calculate the Contribution Margin ratio.
2. Calculate the number of units they need to sell to break even.
Oct. 10 Buyer returned to Urquhart Company unacceptable merchandise that had an invoice price of $600. Urquhart receives them one day later and restores them to inventory. The returned goods had cost Urquhart $400.
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