If Price per bicycle 500; Relevant Range 1,000;
If Price per bicycle 500; Relevant Range 1,000; Fixed cost 80,000 ;Variable cost per unit
$300
Contribution margin per bicycle = Price – Variable cost per unit = $500 – 300 = $200
Contribution margin ratio = contribution margin per unit / price per unit = 200/500 = 40%
BEP in units = Total fixed cost / Contribution margin per unit = $80,000/200 = 400
BEP in $ = Total fixed cost / Contribution ratio = $80,000/.4 = $200,000
How many bicycles do we need to sales to make $50,000 in gross profit?
How much sales revenue in $ do we need to sell to make $50,000 gross profit?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
