This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: range. C. Variable costs per unit of output remain constant as volume changes. D. Sales price per unit remains constant as volume changes. E. All of these are basic assumptions. 4. The excess of expected sales over the sales level at the break-even point is known as the: A. Sales turnover. B. Profit margin. C. Contribution margin. D. Relevant range. E. Margin of safety. Problem ( 60 Points ) SHOW ALL WORK!!!!!!!! A company manufactures a product and sells it for $120 per unit. The total fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are expected to be $75 per unit. What is the company's break-even point in (a) units and (b) dollar sales? $120 - $75 = $45 Contribution Margin Fixed Cost = $155,250 BEP in units = 155,250 / 45 =3,450 BEP in sales = 3,450 * 120 = $414,000...
View Full Document
This note was uploaded on 08/10/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.
- Spring '09