What is the contribution margin ratio

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Reference no: EM131222648

Alex company provide the following data for next month

Selling price per unit $500

Variable Man. Cost per unit 140

Fixed Man. cost per unit 90

Variable selling cost per unit 70

Fixed Selling costs per unit 50

Expected production and sales 2,000 units

Req.

A. What is contribution margin per unit?

B. What is the contribution margin ratio?

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

D. What are the sales in dollars needed to obtain an operating income of $20,000

Reference no: EM131222648

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