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Fred manufactures lamp shade the selling price of which is $80 per unit. The variable cost of the product is $ 50. The fixed costs are 3,000,000. Fred is presently selling 110000 units
Instructions
Question a. What is the contribution margin per unit?
Question b. What is the contribution Margin ratio?
Question c. What is Fred's break-even in units?
Question d. What is the margin of safety?
On January 1, 2001, Bass Co. purchased a machine for $660,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value.
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