Please solve, thanks! Exercise 18-9 (Algo) Contribution margin and break-even LO P2 Sunn...

90.2K

Verified Solution

Question

Accounting

Please solve, thanks!

image

Exercise 18-9 (Algo) Contribution margin and break-even LO P2 Sunn Company manufactures a single product that sells for $195 per unit and whose variable costs are $156 per unit. The company's annual fixed costs are $510,900. (a) Compute the company's contribution margin per unit. Sales per unit Less: Variable cost per unit Contribution margin (b) Compute the company's contribution margin ratio. Numerator: 1 Denominator: Contribution margin per unit / Selling price per unit = Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Numerator: 1 Denominator: Fixed costs 1 Contribution margin per unit Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: 1 Denominator: Fixed costs 1 Contribution margin ratio = Break-Even Dollars = Break-even dollars

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students