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Question - Hardee Company sells a single product. The selling price is $30 per unit and the variable expenses are $18 per unit. The company's most recent annual income statement is given below:
Sales (4,500 units) $135,000
Less variable expenses 81,000
Contribution margin 54,000
Less fixed expenses 48,000
Net Income $6,000
Required -
A. Compute the contribution margin per unit?
B. Compute the CM ratio?
C. Compute the break-even point in sales dollars?
D. Compute the break-even point in units sold?
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