Using the graph below, complete the requirements. Required:1. Determine the following:a. The break-even point in sales dollars and volumeb. The sales price per unitc. Total fixed costsd. Total variable costs at the break-even pointe. The variable cost per unitf. The unit contribution margin 2. What volume of sales must the company generate to reach a target income of$7,500? $35 30

Chapter 21, Practice Exercises #51

Using the graph below, complete the requirements.

$35 30 25 20 15 10 5. 5 6 7 3 10 11 Volume (in hundreds of units) Cost (in thousands)

Required:
1. Determine the following:
a. The break-even point in sales dollars and volume
b. The sales price per unit
c. Total fixed costs
d. Total variable costs at the break-even point
e. The variable cost per unit
f. The unit contribution margin
2. What volume of sales must the company generate to reach a target income of$7,500?

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...