Weber, Inc., sells its one product for $120 per unit. The variable cost per unit is $30. The fixed cost per year is $900,000.
A. What is the contribution margin per unit?
B. What is the breakeven point in units?
C. What is the contribution margin ratio?
D. What is the breakeven point in dollars?
Meeker Company is developing a new product. The selling price has not yet been determined, nor are the variable costs per unit known. The fixed costs are $600,000. Management plans to set the selling price so that variable cost is 55 percent of the selling price.
A. What is the contribution margin ratio?
B. What is the breakeven point in dollars?
C. If management desires a profit of $50,000, what will total sales be?
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