1. Company A has the following information on its management books:

Sales Volume: 5,000 units

Price per Unit: $10

Variable Costs per Unit: $3

Fixed Costs per Unit: $7

What is the contribution margin per unit?

What is the total contribution margin?

2. Company C has the following information on its management books:

Price per Unit: $8

Variable Costs per Unit: $2

Total Fixed Costs: $24,000

How many units must Company C sell to break even?

How many units must Company C sell to make a profit of $12,000?

3. Company D has the following information on its management books:

Price per Unit: $16

Variable Costs (Manufacturing) per Unit: $9

Variable Costs (Non-manufacturing) per Unit: $3

Total Fixed Costs (Manufacturing): $35,000

Total Fixed Costs (Non-manufacturing): $13,000

How many units must Company D sell to break even?

4. Company E has the following information on its management books:

Total Fixed Costs: $24,000

Sales Volume Forecast: 4,000 units

Variable Costs per Unit: $2

What price must Company E charge to break even?

What price must Company E charge to make a profit of $12,000?

5. Company F has the following information on its management books:

Total Fixed Costs (Manufacturing): $35,000

Total Fixed Costs (Non-manufacturing): $14,000

Sales Volume Forecast: 7,000 units

Variable Costs (Manufacturing) per Unit: $9

Variable Costs (Non-manufacturing) per Unit: $3

What price must Company F charge to break even?

Answer rating: 100% (QA)

Lets calculate various financial metrics for each of the companies based on the provided information 1 Company A Sales Volume 5000 units Price per Uni... View the full answer