Contribution margin per unit approach for break-even and desired profit Information concerning a product produced by Salter

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Contribution margin per unit approach for break-even and desired profit Information concerning a product produced by Salter Company appears here:


Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs $175 $75 $600,000 Contribution margin per unit approach for break-even and desired" class="fr-fic fr-dii">


Required
Determine the following:
a. Contribution margin per unit.
b. Number of units that Salter must sell to break even.
c. Sales level in units that Salter must reach to earn a profit of $200,000.

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...
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