Contribution margin per unit approach for break-even and desired profit Information concerning a…

 
   

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Contribution margin per unit approach for break-even and desired profit

Information concerning a product produced by Hansen Company appears here:

Sales price per unit …………………………………………. $180

Variable cost per unit ………………………………………. $100

Total annual fixed manufacturing and operating costs ……. $720,000

Required

Determine the following:

a. Contribution margin per unit.

b. Number of units that Hansen must sell to break even.

c. Sales level in units that Hansen must reach to earn a profit of $240,000.

Contribution margin per unit approach for break even and desired profit Information