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Determine the contribution margin ratio

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Reference no: EM133036462

Question - Q1. Hilton Inc. sells a product for $49 per unit. The variable cost is $23 per unit, while fixed costs are $137,904.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $57 per unit.

Q2. Sally Company sells 26,000 units at $49 per unit. Variable costs are $32.83 per unit, and fixed costs are $222,800.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.

Reference no: EM133036462

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