Konjo has the following data from its operations over the past few years. The accountant has determined that the Total Manufacturing costs include amortization of $108,000 for a very important patent and $39,000 for the amortization of the warehouse building.

The Total Selling and Administration figures include an annual advertising campaign for $45,000. Annual production capacity is 160,000 units.

Units Produced Units Sold

Total Manufacturing Costs $$ Total Selling & Administration Costs $$

2018

100,000 98,000

1,389,000 644,000

2019

140,000 135,000

1,749,000 755,000

Ending inventory is currently at #3,400 units at the end of 2019. They have 23 different customers with a selling price per unit of $25. Demand for 2020 is expected to be 132,000 units.

a) Calculate the contribution margin for one unit.

1,749,000 ______________________

b) What is the break-even?

_________________________ 

755,000 - _____________________

______________________ 

Konjo has the following data from its operations over the past few years. The accountant has determined that the Total Manufacturing costs include amortization of $108,000 for a very important patent and $39,000 for the amortization of the warehouse building. The Total Selling and Administration figures include an annual advertising campaign for $45,000. Annual production capacity is 160,000 units. Ending inventory is currently at #3,400 units at the end of 2019. They have 23 different customers with a selling price per unit of $25. Demand for 2020 is expected to be 132,000 units. a) Calculate the contribution margin for one unit