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