Firebird Mfg. Co. has a contribution margin ratio of 40 percent and must sell 80,000 units at

Question:

Firebird Mfg. Co. has a ratio of 40 percent and must sell 80,000 units at a price of $90 each in order to break even.
a. Compute total fixed costs.
b. Compute variable cost per unit.
c. Develop the company's cost formula.
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...