Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

You have been asked to calculate how many units need to be sold to break even, based on the costs provided below.

Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

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Propose a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information/Cost of goods sold of $35 per unit, Labor = $400/month / Advertising fees = $3,000/ Bank fees = $200/ Phone = $150 per month/ Shipping = $3 per unit/ utilities = $100 per month / Office Supplies = $900 /Conference Exhibitor Fee = $3000 / Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except do not consider taxes.)

Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

 

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