Problem
Rosenthal Company makes and sells products with variable costs of $61 each. Rosenthal incurs annual fixed costs of $28,800. The current sales price is $86.
Contribution margin per unit, break even points in units as well as dollars
Required:
The following requirements are interdependent. For example, the $3,200 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $77 sales price introduced in Requirement d applies to the subsequent requirements.
a. Determine the contribution margin per unit.