Information concerning a product produced by Ender Company appears here: Sales price per unit .................... $200 Variable

Question:

Information concerning a product produced by Ender Company appears here:
Sales price per unit .................... $200
Variable cost per unit ................... $80
Total annual fixed manufacturing and operating costs .... $600,000

Required
Determine the following:
a. per unit.
b. Number of units that Ender must sell to break even.
c. Sales level in units that Ender must reach to earn a profit of $240,000.

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...