Question - The manufacturing manager also provides you with the following operational information: Current Sales = 40,000 units; Sales = $705,000; Variable Costs = $490,000; Fixed Costs = $220,000.
Based upon this information, what is the total contribution margin, the contribution margin ratio, the unit contribution margin, and the break-even point in dollars and in units.
Based upon these calculations, what would happen to the contribution margin if fixed costs decrease and variable costs remain constant?
How could this manufacturing unit decrease its break-even point?
Assume that after a full evaluation of the results above and alternatives, the decision has been made to discontinue operations of the product. Discuss the obligations the company has to report this information and also the obligations the company has to workers that will be displaced taking into consideration biblical principles.