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

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