Fixed expenses are $85,000.00 and variable expenses are $1.20 per unit. Selling price is 2.00 per unit.
Questions.
1) Compute the contriubtin margin per unit and contribution margin ratio (I figured it out)
Contriubtion Margin per unit .80/ sales per unit 2.00= 40% Contribution Margin Ratio
2) Find break even point in units and dollars. Instructor provided formulas below but I could not figure out operating income to calculate break even for units or dollars.
Breakeven Sales in Units = Fixed Expenses + Operating Income divided by Contribution Margin per unit