Compute contribution margin and breakeven point

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Reference no: EM13515352

Computing contribution margin, breakeven point, and units to achieve operating income

Consider the following facts:


A

B

C

Number of units

1,300

3,600

7,500

Sale price per unit

$ 100

$ 40

$ 125

Variable costs per unit

40

10

100

Total fixed costs

72,000

60,000

40,000

Target operating income

180,000

75,000

100,000

Calculate:




Contribution margin per unit




Contribution margin ratio




Breakeven points in units




Breakeven point in sales dollars




Units to achieve target operating income




Requirement

1. Compute the missing information.

Reference no: EM13515352

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