Question

Austin Automotive sells an auto accessory for $ 180 per unit. The company’s variable cost per unit is $ 30 for direct material, $ 25 per unit for direct labor, and $ 17 per unit for overhead. Annual fixed production overhead is $ 37,400, and fixed selling and administrative overhead is $ 25,240.
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the break-even point in units?
d. Using the contribution margin ratio, what is the break-even point in sales dollars?
e. If Austin Automotive wants to earn a pretax profit of $ 51,840, how many units must the company sell?



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  • CreatedJune 03, 2014
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