The following is information concerning a product manufactured by Ames Brothers.
Sales price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950
Variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570
Total fixed manufacturing and operating costs (per month) . . . . . . . . . . . . . . . . . . . 5,700,000
Determine the following:
a. The unit contribution margin.
b. The number of units that must be sold each month to break even.
c. The number of units that must be sold to earn an operating income of $7,600,000 per month.