What is the contribution margin ratio

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Question - Austin automotive sells an auto accessory for 180 per unit. The company's variable cost per unit is 30 for direct material, 25 per unit for direct labor, and 17 per unit for OH. Annual fixed production OH is 37,400 and fixed selling and administrative OH is 23240. What is the contribution margin per unit? What is the contribution margin ratio? What is the break-even points in units? Using the contribution margin ratio, what is the break-even point in sales dollars? If Austin automotive wants to earn a pre-tax profit of 5184, how many units must the company sell?

Reference no: EM131576945

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