The income statement for Thomas Manufacturing Company for 2011 is as follows Sales (10,000 units) $120,000 Variable expenses 72,000 Contribution margin $ 48,000 Fixed expenses 36,000 Operating income $ 12,000 What is the Contribution margin per unit a $7 20 b $1 20 c $4 80 d $120,000 ...

The income statement for Thomas Manufacturing Company for 2011 is as follows: Sales (10,000 units).................................. $120,000 Variable

Question:

The income statement for Thomas Manufacturing Company for 2011 is as follows:
Sales (10,000 units).................................. $120,000
Variable expenses.........................................72,000
.................................. $ 48,000
Fixed expenses.................................. .........36,000
Operating income.................................. ...$ 12,000
What is the per unit?
a. $7.20
b. $1.20
c. $4.80
d. $120,000
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...