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Ashley Furniture Provided the Following Data for Next Month

Question 123

Essay

Ashley Furniture provided the following data for next month:
Selling sales price per unit $500
Variable manufacturing costs per unit $150
Fixed manufacturing costs per unit $ 75
Variable selling costs per unit $ 50
Fixed selling costs per unit $ 50
Expected production and sales 2,000 units
A. Calculate contribution margin per unit.
B. Calculate the contribution margin ratio.
C. Calculate the break-even point in units.
D. Calculate the sales in dollars needed to obtain on operating income of $20,000.

Correct Answer:

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A. $500 - ($150 + $50) = $30
B. $500 - (...

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