At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.
Required:
Determine each of the following values:
a. Unit contribution margin
b. Monthly break-even unit sales volume
c. Before-tax monthly profit
d. Monthly margin of safety in units

Question

At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.
  Required:
Determine each of the following values: 
a. Unit contribution margin
b. Monthly break-even unit sales volume
c. Before-tax monthly profit
d. Monthly margin of safety in units

Quizplus · Accepted Answer

The Answer of At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.
  Required:
Determine each of the following values: 
a. Unit contribution margin
b. Monthly break-even unit sales volume
c. Before-tax monthly profit
d. Monthly margin of safety in units

At a Price of $48, the Estimated Monthly Sales of a Product