Contribution Margin
Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
QUESTION TWO:
Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixed costs are $48,000.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $95 per unit.