Driving School charges

$ $250$$$250$

per student to prepare and administer written and driving tests. Variable costs of

$ $100$$$100$

per student include$$ trainers' wages, study$$ materials, and gasoline. Annual fixed costs of

$ $75$ comma $000$$$75,000$

include the training facility and fleet of cars.

Read the requirements.

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Part $1$

Requirement $1.$ For each of the independent$$ situations, calculate the contribution margin per unit and the breakeven point in units.

Start with the contribution margin per unit. Select the necessary formula in this step. In each subsequent$$ step, determine the contribution margin per unit amount for the sepcific scenario.

Contribution margin per unit $=$

Sales price per unit $-$ Variable costs per unit

Part $2$

Situation a$.$ No change in information.

Situation a$.$ Contribution margin per unit $=$

$$150$

Part $3$

Situation b$.$ Decrease sales price to

$ $220$$$220$

per student.

Situation b$.$ Contribution margin per unit $=$

$$120$

Part $4$

Situation c$.$ Decrease variable costs to

$ $50$$$50$

per student.

Situation c$.$ Contribution margin per unit $=$

$$200$

Part $5$

Situation d$.$ Decrease fixed costs to

$ $60$ comma $000$$$60,000.$

Situation d$.$ Contribution margin per unit $=$

$$150$

Part $6$

For each of the independent$$ situations, calculate the breakeven point in units. Select the necessary formula in this step. In each subsequent$$ step, determine the breakeven point in units for the sepcific scenario.

Breakeven point in units $=$