Contribution margin per unit approach for break-even and desired profit
Information concerning a product produced by Hansen Company appears here:
Sales price per unit ................................................. $180
Variable cost per unit .............................................. $100
Total annual fixed manufacturing and operating costs ....... $720,000
Required
Determine the following:
a. Contribution margin per unit.
b. Number of units that Hansen must sell to break even.
c. Sales level in units that Hansen must reach to earn a profit of $240,000.