Question

# berlino corporation sells coffee makers for \$33 each and has fixed costs of \$10,200 and variable...

berlino corporation sells coffee makers for \$33 each and has fixed costs of \$10,200 and variable costs of \$16 per unit

a. compute the contribution margin per unit \$_____

b. compute the breakeven quantity___ (no commas, only enter amount)

c. compute the breakeven sales amount ____ (no commas, only enter amount)

As we know that:

Contribution per unit= Selling price per unit - variable cost per unit,

Break-even quantity = Fixed Cost/ Contribution margin per unit &

Break-even sales amount = Break-Even quanitity* selling price per unit. Therfore,

a. Computation of contribution margin per unit:

 Particulars \$ Selling Price A 33 Less: Variable cost per unit B 16 Contribution Margin C=A-B 17

b. Computation of breakeven quantity in units:

 Particulars \$ Fixed Costs A 10200 Contribution Margin B 17 Break even quantity(units) C=A/B 600

c. Computation of breakeven sales amount:

 Particulars \$ Break even quantity A 600 Selling Price per unit B 33 Break even sales amount C=A*B 19800

THEREFORE,

a. compute the contribution margin per unit \$ 17

b. compute the breakeven quantity 600

c. compute the breakeven sales amount 19800