Question

Wasabi Corp. has a contribution margin ratio of 45 percent. Product selling price per unit is $320, and total fixed costs per year are $2,385,360.
Required:
(a) Using the contribution margin ratio, what is the break-even point for Wasabi Corp.?
(b) What is the product’s variable cost ratio? What is the product’s total variable cost per unit?
(c) Use two different ways to calculate how many units Wasabi Corp. needs to sell to break even.


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  • CreatedMarch 27, 2015
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