Marison Company makes two products, X and Y. The contribution margin for X is $2 and the contribution margin for Y is $3. Fixed costs are $5,000. The company sells 5 of Product X for every 2 of Product Y. What is the breakeven units (total) rounded to the next whole unit? 2. Marison Company makes two products, X and Y. The contribution margin for X is $2 and the contribution margin for Y is $3. Fixed costs are $5,000. The company sells 5 of Product X for every 2 of Product Y. How many units of Product X must be produced in order to break even (rounded to the next whole unit)? 3. Product A has contribution margin of $16 per unit which is 40% of sales. What is the variable cost per unit? 4. Variable cost per unit is $6. This represents 40% of sales price.
What is contribution margin per unit? 5. XYZ Company has the following product costs for its line of Product A: Direct Materials $10 Direct Labor 8 Variable Overhead 6 Fixed Overhead 5* Fixed overhead includes rent, insurance, and depreciation that has been allocated at the rate of $3 per unit. These costs are unavoidable. They have excess capacity and could handle a special order for 100 units, but the contract offer would allow only a sales price of $27, not their usual rate of $40. If they accept this offer, how much more money will they put to their bottom line? 6. XYZ Company has the following product costs for its line of Product A: Direct Materials $10 Direct Labor 8 Variable Overhead 6 Fixed Overhead 5.
Fixed overhead includes rent, insurance, and depreciation that has been allocated at the rate of $3 per unit. These costs are unavoidable. They are at full capacity. With a regular price of $40 and a sales price of $27, what is the opportunity cost of accepting this special order? 7. SL Corp. makes a toy airplane. The contribution margin per plan is $17.50. Fixed costs are $15,000.