Question: a. Calculate the contribution margin per unit. b. Calculate the contribution margin ratio. c. Calculate the break-even in units and sales dollars for 2012. d.

a. Calculate the contribution margin per unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even in units and sales dollars for 2012.
d. Calculate the profit earned in 2012.
e. Janna Processing is considering changes in plant operations and the production process for2013. The changes would result in a reduction of variable costs per unit of $6, and increase fixed manufacturing costs by $265 000. How many units would need to be sold to earn the same profit as in 2012? Would you recommend the changes?

Step by Step Solution

3.41 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Contribution margin 50 24 8 18 per unit b Contribution margin ratio 18 50 36 or 36 c Br... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

862-B-A-G-F-A (8530).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!