Reference no: EM131538988

Question: 1. MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the

(1) contribution margin per unit and

(2) break-even point in units.

2. Orlando Company management predicts that it will incur fixed costs of $250,000 and earn pretax income of $350,000 in the next period. Its expected contribution margin ratio is 60%. Use this information to compute the amounts of

(1) total dollar sales and

(2) total variable costs.