What is the contribution margin

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Reference no: EM133543677

Question: Cost-Volume-Profit (CVP) Use the data below to answer the questions. This section relates to Table 1B income statement information. Each electric car battery sells for $6,600 and the variable cost per battery is $1,700. Variable costs include sales salaries, advertising and cost of goods sold. All other costs are fixed, and they total $3,000,000. Determine: I. What is the contribution margin (CM) in dollars per unit ($/unit)? Insert your final answer here: 4900 II. What is the break-even point (BEP) in units? Insert your final answer here: 612.24 III. How many sales units are required to achieve a profit of $7,000,000? Insert your final answer here: 2040.82 IV. Define BEP. Insert your final answer here. Maximum 50 words: The break-even point for V. Explain the importance of BE calculated from (2) above points. Insert your final answer here: The break-even point is 1 Round your final answers to two decimal places. Do not insert units, dollar signs ($), percentage signs (%), spaces, brackets ( ) and commas (.) in your final answer. Where applicable, round your answers appropriately to whole numbers, especially the BEP and sales units.

Reference no: EM133543677

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