Question:
Computing contribution margin, breakeven point, and units to achieve operating income
Consider the following facts:
|
A
|
B
|
C
|
|
Number of units
|
1,300
|
3,600
|
7,500
|
|
Sale price per unit
|
$ 100
|
$ 40
|
$ 125
|
|
Variable costs per unit
|
40
|
10
|
100
|
|
Total fixed costs
|
72,000
|
60,000
|
40,000
|
|
Target operating income
|
180,000
|
75,000
|
100,000
|
|
Calculate:
|
|
|
|
|
Contribution margin per unit
|
|
|
|
|
Contribution margin ratio
|
|
|
|
|
Breakeven points in units
|
|
|
|
|
Breakeven point in sales dollars
|
|
|
|
|
Units to achieve target operating income
|
|
|
|
Requirement
1. Compute the missing information.