For the following case, compute the missing values. Case A Unit sales ............800 Sales revenue ...........$40,000 Variable

Question:

For the following case, compute the missing values.

Case A

Unit sales ............800

Sales revenue ...........$40,000

Variable cost per unit ........$35

Total Contribution Margin? ............$12,000

Fixed costs ..........$2,500

Operating income? .......$9,500

Unit Contribution Margin? ......$15

Break-even point (units)? .......167

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...