SDZ Corporation produces and sells a single product. Its selling price is $15 per unit, and the variable cost per unit is $12. Total fixed costs per month are $3,000.
a)What is SDZ's contribution margin per unit?
b)Calculate the monthly breakeven point in units.
c)How many units must SDZ sell for a pre-tax target profit of $10,000 per month?

Question

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The Answer of SDZ Corporation produces and sells a single product. Its selling price is $15 per unit, and the variable cost per unit is $12. Total fixed costs per month are $3,000.
a)What is SDZ's contribution margin per unit?
b)Calculate the monthly breakeven point in units.
c)How many units must SDZ sell for a pre-tax target profit of $10,000 per month?

SDZ Corporation Produces and Sells a Single Product