Suzy Manufacturing has estimated monthly sales of 18,000 units for $48 per unit. Variable costs include manufacturing

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Suzy Manufacturing has estimated monthly sales of 18,000 units for $48 per unit. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.   

Required

Determine each of the following values.     

1.        Unit contribution margin

2.        Monthly break-even unit sales volume

3.        Before-tax monthly profit

4.        Monthly margin of safety in units

 

Create a contribution margin-based income statement.

    • 12 years ago
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