The following information describes a product expected to be produced and sold by Pepin Corporation:
$$\begin{array} { l l }
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$$ Required:
a.Calculate the contribution margin per unit.
b.Calculate the break-even point in units.

Question

The following information describes a product expected to be produced and sold by Pepin Corporation:
 $$\begin{array} { l l } 
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$$ Required:
a.Calculate the contribution margin per unit.
b.Calculate the break-even point in units.

Quizplus · Accepted Answer

The Answer of The following information describes a product expected to be produced and sold by Pepin Corporation:
 $$\begin{array} { l l } 
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$$ Required:
a.Calculate the contribution margin per unit.
b.Calculate the break-even point in units.

The Following Information Describes a Product Expected to Be Produced