Suppose that a company expects the following financial results from a project during its first year operation Sales revenue $300,000 Variable costs $100,000 Fixed costs $50,000 Total unit produced and sold 10,000 units (a) Compute the contribution margin percentage (b) Compute the break even point ...

Given p selling price per unit 30 ...

Suppose that a company expects the following financial results from a project during its first year operation:

Question:

Suppose that a company expects the following financial results from a project during its first year operation:

Sales revenue: $300,000
Variable costs: $100,000
Fixed costs: $50,000
Total unit produced and sold: 10,000 units

(a) Compute the contribution margin percentage.
(b) Compute the break-even point in units sold.

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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