SUS Appliance toasters sell for $20 per unit, and the variable cost to produce them is $15.

Question:

SUS Appliance toasters sell for $20 per unit, and the variable cost to produce them is $15. SUS estimates that the fixed costs are $80,000.
a. Compute the break-even point in units.
b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved.

Sales__________
- variable costs___________
Contribution margin___________
- Fixed costs____________
Total operating profit (loss)__________

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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