Anton Company produces and sells bicycles for $1,250. The variable costs per unit are $600 plus...

Transcribed Image Text:

Anton Company produces and sells bicycles for $1,250. The variable costs per unit are $600 plus a sales commission of 20% of the selling price. Total fixed costs consist of $23,500 in fixed overhead and $86,500 in fixed selling and administrative costs. Required: a. Compute the contribution margin per unit. b. Compute the break-even point in units and dollars. c. How many units must be sold to earn a profit of $35,000? d. What would be the break-even point in units if the sales commission is reduced to $50 per unit sold? Note: Round your final answer to whole value. a. Contribution margin b. Break-even point b. Break-even sales per unit units c. Number of bicycles d. Break-even point units Anton Company produces and sells bicycles for $1,250. The variable costs per unit are $600 plus a sales commission of 20% of the selling price. Total fixed costs consist of $23,500 in fixed overhead and $86,500 in fixed selling and administrative costs. Required: a. Compute the contribution margin per unit. b. Compute the break-even point in units and dollars. c. How many units must be sold to earn a profit of $35,000? d. What would be the break-even point in units if the sales commission is reduced to $50 per unit sold? Note: Round your final answer to whole value. a. Contribution margin b. Break-even point b. Break-even sales per unit units c. Number of bicycles d. Break-even point units