How many units must be sold to break even for the month

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Reference no: EM131967471

Problem

Johnson Company produces and sells a single product whose selling price is $80.00 per unit and whose variable expense is $50.00 per unit. The company's total fixed costs for this operation are $270,000 per month. Please answer each of the following parts of this question and show all of your calculation work:

(a) What is the contribution margin ratio? (express your answer as a percentage to two decimal places)

(b) How many units must be sold to break even for the month?

Reference no: EM131967471

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