Question: 1) compute the contribution margin per unit of E-Book 2) What is contribution margin 3) compute the break even in units for E-Book 4) compute
1) compute the contribution margin per unit of E-Book
2) What is contribution margin
3) compute the break even in units for E-Book
4) compute how many units from E-Book the company should sell in order to earn a target profit of $50,000
assume that the company decided to produce both models in equal proportions (50% E-Book and 50% Hard copy) and the total fixed cost is $620,000
5) compute the unit contribution margin for Hard Copy
6) Compute the weighted average unit contribution margin (WA-CM)
7) calculate break even point in units when both models are sold
USA Publishing produces two types of books (E-Book and Hard Copy), the following information was compiled by the accounting department for the year ended 2019: Model E-Book 100 Selling price per unit Variable cost per unit Hard Copy 80 30 First: Assume that the company decided to produce only the E-Book model. Fixed costs if the E-Book is produced will be $200,000
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
