mazoncom HoneWINGS e Univeraity Googie Plat Apple Bing Goopl

mazon.com HoneWINGS e Univeraity Googie Plat Apple Bing Goople ano Help Ch 18 Connect Assignment 8 Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company\'s annual xed costs ane $562,500. points Reerences ?Prev 8a, 20111 Next?

Solution

(a) Contribution Margin per unit :-

SP per unit

180

VC per unit

135

Contribution margin pu

45

(b) Contribution margin ratio :-

Choose Numenator

/

Choose Denominator

=

Contribution Margin Ratio

Contribution pu

SP per unit

Contribution Margin Ratio

45

/

180

=

25%

(c) BEP (in units) :-

Choose Numenator

/

Choose Denominator

=

Break Even units

Total Fixed cost

Contribution pu

Break Even units

562500

/

45

=

12500 units

(d) BEP (in $ of sales):-

Choose Numenator

/

Choose Denominator

=

Break Even dollars

Total Fixed cost

Contribution margin ratio

Break Even dollars

562500

/

25%

=

$ 2250000

SP per unit	180
VC per unit	135
Contribution margin pu	45