Compute the missing amounts. (Enter the contribution margin ratio to nearest per

Question

Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)

A

Sale price per unit

$280

Variable costs per unit

70

Total fixed costs

79,590

Target profit

269,640

Calculate:

Contribution margin per unit

Contribution margin ratio

%

Required units to break even

Required sales dollars to break even

Required units to achieve target profit

A

Sale price per unit

$280

Variable costs per unit

70

Total fixed costs

79,590

Target profit

269,640

Calculate:

Contribution margin per unit

Contribution margin ratio

%

Required units to break even

Required sales dollars to break even

Required units to achieve target profit

Explanation / Answer

Contribution margin per unit = 280-70 = 210 Contribution margin ratio = 210/280= 75% Required units to break even = 79590/210= 379 Required sales dollars to break even = 379*280= 106120 Required units to achieve target profit = (79590+269640)/210= 1663

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