Solution-Find the contribution margin ratio

Find the contribution margin ratio

Assignment Help Cost Accounting

Reference no: EM13552419

Wyatt Inc. expects to maintain the same inventories at the end of the year as at the beginning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units.

Instructions

1. What is (a) the contribution margin ratio and (b) the unit contribution margin?

2. Determine the break-even point in units.

3. Construct a cost-volume-profit chart, indicating the break-even point.

4. Construct a profit-volume chart, indicating the break-even point.

5. What is the margin of safety?

Reference no: EM13552419

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Find the contribution margin ratio

Reference no: EM13552419

Reference no: EM13552419

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