The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.

Selling price per unit $55
Variable manufacturing costs $23
Annual fixed manufacturing costs $450000
Variable, marketing, distribution and administration costs $9
Annual fixed non-manufacturing costs $229000
Annual volume 50000

 

  1. Calculate the contribution margin per unit.
  2. Calculate the contribution margin ratio.
  3. Calculate the break-even in units and sales dollars for 2020.
  4. Calculate the profit earned in 2020.

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