CabInc. produces and sells a single product. Unit costs for direct materials and direct labor...
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Accounting
CabInc. produces and sells a single product. Unit costs for direct materials and direct labor are $30 and $20, respectively. In 2017, 12,000 units were produced and total overhead was $284,000. In 2018 total overhead was $204,000 when 7,000 units were produced. Selling price of the unit is $86.
a. Compute the total fixed overhead of the company.
b. Compute the contribution margin per unit.
c. Compute the company's break-even point in sales dollars.
d. Compute the number of units that must be sold to have net income of $50,000 (ignore income taxes).
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