Total fixed costs Sale price per unit Variable costs per unit $15,000 $23 $15

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Total fixed costs
$15,000
$23
Sale price per unit
Variable costs per unit $15
Refer to the numbers above. Assuming 10,000 units are sold, what is
the contribution margin in dollars?
Refer to the numbers above. If sales revenue per unit increases to $25
and 10,000 units are sold, what is the contribution margin in dollars?
Refer to the numbers above. If sales revenue per unit decreases to $18
and 15,000 units are sold, what is the operating income or loss in
dollars?
Transcribed Image Text:Total fixed costs $15,000 $23 Sale price per unit Variable costs per unit $15 Refer to the numbers above. Assuming 10,000 units are sold, what is the contribution margin in dollars? Refer to the numbers above. If sales revenue per unit increases to $25 and 10,000 units are sold, what is the contribution margin in dollars? Refer to the numbers above. If sales revenue per unit decreases to $18 and 15,000 units are sold, what is the operating income or loss in dollars?
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