compute the missing information 556866

Computing contribution margin, breakeven point, and units to achieve operating income

Consider the following facts:

A

B

C

Number of units

1,300

3,600

7,500

Sale price per unit

$ 100

$ 40

$ 125

Variable costs per unit

40

10

100

Total fixed costs

72,000

60,000

40,000

Target operating income

180,000

75,000

100,000

Calculate:

Contribution margin per unit

Contribution margin ratio

Breakeven points in units

Breakeven point in sales dollars

Units to achieve target operating income

Requirement

1. Compute the missing information.

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