Austin Automotive sells an auto accessory for $180 per unit. The company's
variable cost per unit is $30 for direct material, $25 per unit for direct labor,
and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed
selling and administrative overhead is $25,240.
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the break-even point in units?
d. Using the contribution margin ratio, what is the break-even point in sales dollars?
e. If Austin Automotive wants to earn a pre-tax profit of $51,840, how many units
must the company sell?
Answers
Status NEW
Posted 11 Aug 2017 11:08 PM
My Price 7.00
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