Information concerning a product produced by Askew Company appea

Information concerning a product produced by Askew Company appears here.

Sales price per unit .................. $145

Variable cost per unit ................ $55

Total annual fixed manufacturing and operating costs . $810,000


Required

Determine the following.

a. Contribution margin per unit.

b. Number of units that Askew must sell to break even.

c. Sales level in units that Askew must reach to earn a profit of $360,000.

d. Determine the margin of safety in units, sales dollars, and as a percentage


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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