Calculate the per-unit contribution margin of a product

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Reference no: EM132609845

Questions -

Q1. Calculate the per-unit contribution margin of a product that has:-

a. a sale price of $200 if the variable costs per unit are $65.

b. a sale price of $400 if the variable costs per unit are $165.

Q2. What is the contribution margin ratio?

a. A product has a sales price of $150 and a per-unit contribution margin of $50

b. A product has a sales price of $250 and a per-unit contribution margin of $75

Q3. Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here.

Q4. Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?

Q5. Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information:

Q6. Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each are shown: 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?

Q7. Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?

Q8. Use the information from the previous exercises involving Salvador Manufacturing to determine their break-even point in sales dollars.

Reference no: EM132609845

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