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Calculate the per-unit contribution margin of a product

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Reference no: EM132516101

Question 1: Calculate the per-unit contribution margin of a product that has a sale price of $200 if the variable costs per unit are $65.

Question 2: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500.

A. What is the company's break-even point in units?

B. What is the company's break-even point in dollars?

C. Construct a contribution margin income statement for the month of September when they will sell 900 units.

D. How many units will Maple need to sell in order to reach a target profit of $45,000?

E. What dollar sales will Maple need in order to reach a target profit of $45,000?

F. Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.

Question 3: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown:

                                             Sellings price                   Variable cost
Product per unit per unit Snowboards  $320.00                 $170.00
Skis                                            $400.00                      $225.00
Poles                                          $ 50.00                        $ 20.00

Their sales mix is reflected in the ratio 7:3:2. What is the overall unit contribution margin for Salvador with their current product mix?

Reference no: EM132516101

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