Tableau DA 18-1: Quick Study, Contribution margin and break-even LO A1, P2

Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to aid our analysis of this model. Total Fixed Costs Factory rent expense Equipment depreciation Insurance expense expense Production manager salaries Advertising expense Variable Costs Per Unit Internal Speaker Battery Camera Components Receiver Screen Sales Price Per Unit iPhone ableau 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Choose Numerator: / Choose Denominator: Contribution Margin Ratio Contribution margin ratio / 3. Compute break-even point in sales dollars. Choose Denominator: Choose Numerator: / Break-Even Dollars / Break-even dollars Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but it worries that fixed costs are so large that it is difficult to earn a profit. The Tableau Dashboard is provided to aid our analysis of this model. Total Fixed Costs Factory rent expense Equipment depreciation Insurance expense expense Production manager salaries Advertising expense Variable Costs Per Unit Internal Speaker Battery Camera Components Receiver Screen Sales Price Per Unit iPhone ableau 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Choose Numerator: / Choose Denominator: Contribution Margin Ratio Contribution margin ratio / 3. Compute break-even point in sales dollars. Choose Denominator: Choose Numerator: / Break-Even Dollars / Break-even dollars