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Question - B&B produces and sells one single product: BT5. The production capacity of B&B is 48,000 units. Annual sales volume expected in 2021 is 40,000 units. The following information is estimated for 2021: selling price per unit: $100, variable cost per unit: $75, and annual fixed costs: $520,000.
Required - Answer the following questions in the spaces provided:
1. What is the available production capacity?
2. What is the contribution margin per unit?
3. What is the contribution margin ratio?
4. What is the break-even-point (BEP) in units?
5. What is the BEP in sales dollars?
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