LMN Company produces a product that sells for 1 The company has production

Lmn company produces a product that sells for 1 the

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LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming production and sales of 750,000 units, the contribution margin per unit is$.60VC = $300,000/$750,000 units = $0,40/unit; CM = $1 - $.40 = $.60Managers make assumptions in CVP analysis. These assumptions include: - Constant variable cost per unit.- Constant selling price per unit- Constant total fixed costsA company has break-even sales of $200,000. If the company expects sales of $500,000, the margin of safety is60%
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