Question

he information that follows was obtained from the accounting records of Portofino Manufacturing during a period...

he information that follows was obtained from the accounting records of Portofino Manufacturing during a period when the company sold 104,000 units.

Sales revenue $ 9,360,000
Variable costs 3,016,000
Fixed costs 5,856,000

Required:

  1. Compute the company's per-unit contribution margin and break-even point in units.
  2. How many units must Portofino sell to produce a target profit of $549,000?
  3. Assume that Portofino was able to reduce the variable cost per unit by $5. What selling price could management charge if it desired to maintain the current break-even point?
A. Per-unit contribution margin
Break-even point units
B. Unit sales
C. Selling price
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