A manufacturing company produces a product that sells for $6.80 per unit, whereas its variable costs and expenses are $1.50 per unit. The company has an annual fixed cost of $524,000. The company's projected sales in the upcoming year are 170,000 units of its product.

Compute the following:

(i) Company's contribution margin (CM),

(ii) Contribution margin ratio (CMR),

(iii) Expected profit in the year.

(c) Briefly discuss the Break-even Analysis for a Single Product.

Answer rating: 100% (QA)

i Contribution Margin CM can be calculated as follows CM Selling price per unit Variable cost per un... View the full answer