Chp 22 &23 Spring 2012 ACC 102 Name: Date: 1. Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. a. What is the Variable Cost? b. What is the Fixed Cost? c. What is the contribution margin? rad oo lan)er w d. What is the contribution margin ratio? neeoocM! tns 00218 e. How many units must they make to breakeven? edhaeo 101 0 ad THN e f What is the breakeven in sales dollars? If they desire a profit of $100,000, how many units would be required? 9