What is Wildhorse monthly breakeven point in units

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Question - Laura Hall owns and operates Wildhorse, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $60 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:

Sales revenue $826,200

Variable expenses 660,960

Contribution margin 165,240

Fixed expenses 79,440

Operating income $85,800

Required -

(a) What is Wildhorse's contribution margin per unit?

(b) What is Wildhorse's monthly breakeven point in units?

(c) What is Wildhorse's contribution margin ratio?

(d) What is Wildhorse's monthly breakeven point in sales dollars?

Reference no: EM133056009

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