Information concerning a product produced by Nicholl Company appears here: Sales price per unit ............... $210 Variable

Question:

Information concerning a product produced by Nicholl Company appears here:
Sales price per unit ............... $210
Variable cost per unit .............. $135
Total fixed manufacturing and operating costs .... $375,000

Required
Determine the following:
a. per unit.
b. Number of units Nicholl must sell to break even.
c. Sales level in units that Nicholl must reach in order to earn a profit of $150,000.

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...