A company sells a product for 90 per unit with variable


Question: 1. A company sells a product for $90 per unit with variable costs of $54 per unit. What is the contribution margin ratio?

2. Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000.

(1) Use this information to compute the company's

(a) contribution margin,

(b) contribution margin ratio,

(c) break-even point in units, and

(d) break-even point in dollars of sales.

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Accounting Basics: A company sells a product for 90 per unit with variable
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