1. Compute and interpret the contribution margin ratio using the following data: sales, $150,000; total variable cost, $90,000.
2. MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the (1) contribution margin per unit and (2) break even point in units.
3. MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the (1) contribution margin per unit and (2) break even point in units.
4. How will the break even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use I for increase and D for decrease. (It is not necessary to compute new break even points.)
|
Change |
Break even in Units Will |
|
1Total fixed cost to $520,000 |
__________ |
|
2Variable cost to $134 per unit |
__________ |
|
3 Selling price per unit to $290 |
__________ |
|
4Variable cost to $100 per unit |
__________ |
|
5Total fixed cost to $544,000 |
__________ |
|
6 Selling price per unit to $320 |
__________ |