A manufacturer sells only one product for $30 per unit. Its variable costs are $8...
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Accounting
A manufacturer sells only one product for $30 per unit. Its variable costs are $8 for manufacturing and $2 for selling expenses. The fixed costs per year are $100,000 for manufacturing and $80,000 for selling and administrative expenses. The company does not carry any inventory.
1A- The companys contribution margin per unit is $.
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1B-In order to break even, the company must sell units.
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1C-The dollars of sales needed in order to break even is $ .
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1D-If the company sells 10,000 units, its net income before tax will be $ .
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1E-If the company wants to earn $60,000 of net income before income taxes, it must sell units of product.
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