Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company incurs variable manufacturing costs of $30 per unit. Variable selling expenses are $9 per unit, annual fixed manufacturing costs are $240,000, and fixed selling and administrative costs are $165,000 per year.
Determine the break-even point in units and dollars using each of the following approaches:
b.Contribution margin per unit.
c.Confirm your results by preparing a contribution margin income statement for the breakeven sales volume.
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