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krek1111
1 day ago
14

PB2.

Business
1 answer:
Scilla [3.5K]23 hours ago
5 0

Answer:

The per unit contribution margin for the 18-inch blade. Break even in units = Fixed cost/Contribution per unit

                 = 85,000/11 (15-4)

                                  = 7,728 units (rounded)

The contribution margin ratio associated with the 18-inch blade.

The overall contribution margin (CM) is derived by taking the total sales and deducting total variable costs (TVC). The contribution margin per unit is equivalent to the sales price per unit (SP) minus the variable costs per unit (VC). This figure is essential for calculating a company's breakeven point. The contribution margin ratio indicates how much contribution is generated towards fixed costs with the sale of each unit.

CM ratio = $ 11/ $ 15 *100= 73.33%

(Variable cost = 15 -4 = 11 )

Contribution margin income statement for January.

Sales                               $ 180,000

Variable costs                ($ 48,000)Gross profit                   $ 132,000

Fixed Costs                    ($ 85,000)

Net Profit                         $ 47,000

         

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