What is the contribution margin of the product

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Reference no: EM131516999

Howard Beal Co. manufactures molds for casting aluminum alloy test samples. Fixed costs amount to $20,000 per year. Variable costs for each unit manufactured are $16. Sales price per unit is $28.

a. What is the contribution margin of the product?

b. Calculate the breakeven point in unit sales and dollars.

c. What is the operating profit (loss) if the company manufactures and sells

(i) 1,500 units per year?

(ii) 3,000 units per year?

d. Plot a breakeven chart using the foregoing figures.

Reference no: EM131516999

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