Righway Corporation has supplied the following data:
Sales per period............................. 1,000 units
Selling price................................... $50 per unit
Variable manufacturing cost.......... $20 per unit
Selling expenses............................ $10,000 plus 5% of sales
Administration expenses................ $5,000 plus 15% of sales
1. The total contribution margin per period is: A) $22,500 B) $27,500 C) $30,000 D) $20,000
2. The break-even point per period is (round to nearest unit): A) 750 units B) 545 units C) 500 units D) 667 units
3. If the selling price is changed to $55 per unit, the break-even point will be (round to nearest unit): A) 667 units B) 545 units C) 625 units D) 500 units
SOLUTION
SOLUTION
