Question - Cost-volume-profit relationships
The following data are available for a product manufactured and sold by Logan Company:
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Maximum capacity with present facilities
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40,000 units
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Total fixed cost (per period)
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$468,000
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Variable cost per unit
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$128
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Sales price per unit
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$212
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Compute the following:
(a) Contribution margin per unit: $_______________
(b) Number of units that must be sold to break-even: _______________ units
(c) Dollar sales volume to produce income of $864,000 before taxes: $_______________
Computations: