Suppose a firm provides you with the following information for the most recent period of operations: (a)

Question:

Suppose a firm provides you with the following information for the most recent period of operations:
(a) Sales = 500 units;
(b) Revenues = $15,000;
(c) Variable manufacturing costs = $5,000;
(d) Variable selling and administrative costs = $1,000;
(e) Fixed manufacturing costs = $6,000, and;
(f) Fixed selling and administrative costs = $2,000.

Required:
Calculate both the unit and , and prepare a statement.

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...