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Compute the contribution margin ratio

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Reference no: EM132627485

The following information relates to the only product sold by Mastrolia Manufacturing.

Sales price per unit$45

Variable cost per unit 27

Fixed costs per year 237,000

a. Compute the contribution margin ratio and the dollar sales volume required to break even.

b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

a. Contribution margain ratio ___________%

Break even sales dollar ____________

b. Margin of safety (in dollar) ____________

Reference no: EM132627485

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