Austin Automotive sells an auto accessory for $ 180 per unit. The companys variable cost per unit

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 per unit?
b. What is the ratio?
c. What is the break-even point in units?
d. Using the 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?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...