The following is information concerning a product manufactured by Ames

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.
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...