The following data are available for a product manufactured and sold by Logan Company: Maximum Capacity with
Question:
Maximum Capacity with present facilities: ...........40,000 units
Total fixed cost per pound..................................$468,000
Variable cost per unit.............................................$128
Sales price per unit................................................$212
Compute the following:
(a) Contribution margin per unit: $_______________
(b) Number of units that must be sold to break-even: _______________ units
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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