senora company manufactures a single product that sells for 110 per unit 544660
Contribution Margin Income Statement and Ratio
Senora Company manufactures a single product that sells for $110 per unit. The company projects sales of 500 units per month. Projected costs are as follows:
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senora company manufactures a single product that sells for 110 per unit 544660
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|
Type of Cost |
Manufacturing |
Non manufacturing |
|
Variable |
$10,000 |
$5,000 |
|
Non variable |
12,500 |
$7,500 |
1. Prepare a contribution margin income statement for the month.
2. What is the contribution margin ratio?
3. What volume, in terms of units, must the company sell to break even?
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