Data available for the current year are presented below. Based upon the information presented above, the contribution margin for the company was A. $400,000 B. $470,000 C. $530,000 D. $600,000

A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows:

Sales price per unit $40

Total variable production cost per unit $22

Sales commission (on sales) 5%

Fixed costs and expenses:

Manufacturing overhead $5,598,720

General and administrative $3,732,480

Effective income tax rate 40%

The number of units the company must sell in the coming year in order to reach its breakeven point is

A. 388,800 units.

B. 518,400 units.

C. 583,200 units.

D. 972,000 units.

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Variable manufacturing cost of goods sold Unallocated costs (e.g., president's salary) Fixed costs controllable by division managers (e.g., advertising, engineering supervision costs) Net revenue Variable selling and administrative costs Fixed costs controllable by others (e.g., depreciation, insurance) Whole Company 400,000 100,000 90,000 1,000,000 130,000 120,000 Division 1 Division 2 $180,000 $220,000 50,000 40,000 400,000 600,000 70,000 60,000 50,000 70,000