Question 1:

Given the following information: determine;

Selling Price	$17
Fixed Expenses
Selling & Administrative	$130,000
Interest Expense	$10,000
Variable Expenses
Cost of goods Sold	$4
Selling and Administrative	$3

• What is the company’s contribution margin?
• What is the break-even points in units?
• If the company wants to earn a profit of $42,000 instead of breaking even, what is the number of units the company must sell?
• Why is it important to understand the importance of break-even analysis in a business?

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Contribution Margin and Break-even Point was first posted on February 24, 2021 at 1:10 am.
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