Question: Bills Cabinets sells a product for $360 per unit. The companys variable cost per unit is $60 for direct material, $50 per unit for direct

Bill’s Cabinets sells a product for $360 per unit. The company’s variable cost per unit is $60 for direct material, $50 per unit for direct labor, and $34 per unit for overhead. Annual fixed production overhead is $74,800, and fixed selling and administrative overhead is $50,480.
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the break-even point in units?
d. Using the contribution margin ratio, what is the break-even point in sales dollars?
e. If Bill’s Cabinets wants to earn a pre-tax profit of $51,840, how many units must the company sell?

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