Question

Selling price per unit $55 Variable manufacturing costs $23 Annual fixed manufacturing costs $450000 Variable, marketing,...

Selling price per unit

$55

Variable manufacturing costs

$23

Annual fixed manufacturing costs

$450000

Variable, marketing, distribution and administration costs

$9

Annual fixed non-manufacturing costs

$229000

Annual volume

50000

a. Calculate the contribution margin per unit.                                         

b. Calculate the contribution margin ratio.

c. Calculate the break-even in units and sales dollars for 2016.

d.Calculate the profit earned in 2016.

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