Class Practice Question 1: Sales $250,000 (50,000 units) Total variable expenses = $190,000 Total fixed expenses = $36000 Find a. Contribution Margin b. Contribution Margin Ratio c. Break-even point (Units) d. Break-even point (Dollars) a. Contribution margin = Sales - Variable cost = $250,000-$190,000 Contribution margin = $60,000 b. CM RATIO=CM / sales = $60,000/$250,000 CM RATIO=0.24 c. BEP in units EXPRESS EVERYTHING IN TERMS OF UNITS SELLING PRICE PER UNIT (250000/50000) - $5 VARIABLE COST PER UNIT - Total VC/ no of units 190000/50000 $3.8 Contribution per unit - SP PER UNIT - VC PER UNIT = 5- 3.8-$1.2 BEP IN UNITS FC/CM = 36000/1.2 BEP IN UNITS = 30,000 UNITS d. BEP INS=F.C/CM ratio -36000/0.24 BEP IN S- $150,000 Question 2: Sales $5000,000 (500,000 units) Total variable expenses = $3800,000 Total fixed expenses = $720000 Find a. Contribution Margin b. Contribution Margin Ratio c. Break-even point (Units) d. Break-even point (Dollars) Question 3: Sales $65000 (6500 units) Total variable expenses = $30000 Total fixed expenses = $20000 Find a. Contribution Margin b. Contribution Margin Ratio c. Break-even point (Units) d. Break-even point (Dollars)