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What is contribution margin per unit

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Reference no: EM132849012

Question - Palmer Co. provided the following data for next month:

Selling price per unit $500

Variable manufacturing costs per unit $150

Fixed manufacturing costs per unit $75

Variable selling costs per unit $50

Fixed selling costs per unit $50

Expected production and sales 2,000 units

Required -

1. What is contribution margin per unit?

2. What is the contribution margin ratio?

3. What is the break-even point in units?

4. What are the sales in dollars needed to obtain on operating income of $20,000?

Reference no: EM132849012

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