The following information describes a product expected to be produced and sold by Quark Corporation:
Selling price…………………………… $33 per unit
Variable costs………………………… $27 per unit
Total fixed costs……………………… $855,000 per year
Required:
(a) Calculate the contribution margin per unit.
(b) Calculate the break-even point in units.

Question

Quizplus · Accepted Answer

The Answer of The following information describes a product expected to be produced and sold by Quark Corporation:
Selling price…………………………… $33 per unit
Variable costs………………………… $27 per unit
Total fixed costs……………………… $855,000 per year
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