Question

Selling price per unit $30.00 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $2.15...

Selling price per unit

$30.00

Variable costs per unit:

Direct material

$5.25

Direct manufacturing labour

$2.15

Manufacturing overhead

$1.64

Selling costs

$1.85

Annual fixed costs

$110,000
  1. The Geraldo Inc. contribution margin ratio is
    1. 110.2%
    2. 142.5%
    3. 29.8%
    4. 70.2%
    5. 63.7%

  1. The Geraldo Inc. break-even point in sales dollars is
    1. $99,819.
    2. $77,193.
    3. $172,685.
    4. $172,684.
    5. $156,695.

  1. The Geraldo Inc. break-even point in units is
    1. 5,757 units.
    2. 3,502 units.
    3. 5,756 units.
    4. 6,059 units.
    5. 12,952 units.
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Answer #1

Note: break-even point is always rounded upward in order to ensure the fixed cost is absorbed completely.

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