Question: Cost Behavior Analysis at Facebook Values: Fixed Costs: $500,000 Variable Costs per Unit: $10 Sales Price per Unit: $20 Requirements: Calculate the contribution margin per

Cost Behavior Analysis at Facebook

    • Values:
      • Fixed Costs: $500,000
      • Variable Costs per Unit: $10
      • Sales Price per Unit: $20
    • Requirements:
      1. Calculate the contribution margin per unit and ratio.
      2. Determine the breakeven point in units and dollars.
      3. Discuss how changes in sales volume affect profitability at Facebook.
      4. Recommend pricing strategies to increase profit margins.

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