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Question 6: The following company provides a single product and have provided their summary forecast data...

Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.    

Selling price per unit

$55

Variable manufacturing costs

$23

Annual fixed manufacturing costs

$450000

Variable, marketing, distribution and administration costs

$9

Annual fixed non-manufacturing costs

$229000

Annual volume

50000

a. Calculate the contribution margin per unit.                         

b. Calculate the contribution margin ratio.

c. Calculate the break-even in units and sales dollars for 2020.

d.Calculate the profit earned in 2020.

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Expert Solution

ekkarill92 answered 2 years ago
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