The following information describes a product expected to be produced and sold by Pepin Corporation:
$\begin{array}{ll}
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$

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:
 $\begin{array}{ll}
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$
 
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:
 $\begin{array}{ll}
\text { Selling price } & \$ 32 \text { per unit } \
\text { Variable costs } & \$ 27 \text { per unit } \
\text { Total fixed costs } & \$ 850,000 \text { per year }
\end{array}$
 
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