The following information describes a product expected to be produced and sold by Quark Corporation:
$\begin{array}{llr}
\text { Selling price} & \text {\$ 33 per unit } \
\text {Variable costs } & \text { \$ 27 per unit } \
\text { Total Fixed costs } & \text {\$ 855,000 per year }
\end{array}$

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 Quark Corporation:
$\begin{array}{llr}
  \text {  Selling price} & \text {\$ 33 per unit  } \
 \text {Variable costs  } & \text { \$ 27 per unit } \
 \text { Total Fixed costs  } & \text {\$ 855,000 per year  } 
\end{array}$

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 Quark Corporation:
$\begin{array}{llr}
  \text {  Selling price} & \text {\$ 33 per unit  } \
 \text {Variable costs  } & \text { \$ 27 per unit } \
 \text { Total Fixed costs  } & \text {\$ 855,000 per year  } 
\end{array}$

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