Contribution Margin and Breakeven point Elizabeth McClary recently begin a small snowboard company called Pure Powder. She and her staff have assembled cost information regarding the snowboard Variable unit cost per (per snowboard):
Direct materials $25
Direct labor 20
Variable manufacturing overhead 7
Variable Selling and administrative 3
Fixed cost( for period):
Fixed manufacturing overhead 24,3000
Fixed selling and administrative 40,-075
The snowboards sell for $180
What is the unit cost contributing margin for snowboard?
What is the breakeven point in units?
Explain what the contribution margin is and why?
