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 1 year ago

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