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What is the available production capacity

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Reference no: EM132824111

B&B produces and sells one single product: BT5. The production capacity of B&B is 65,000 units. Annual sales volume expected in 2021 is 50,000 units.

The following information is estimated for 2021: selling price per unit: $25, variable cost per unit: $16, and annual fixed costs: $324,000.

Required:

Answer the following questions in the spaces provided:

Problem 1. What is the available production capacity?

Problem 2. What is the contribution margin per unit?

Problem 3. What is the contribution margin ratio?

Problem 4. What is the break-even-point (BEP) in units?

Reference no: EM132824111

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