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Question

Safari File Edit View History Bookmarks Window Help ezto mheducation.com Group Work Ch 3 Group Work Ch 3 Question 2 (of 4) 2. 250 points Exercise 3-2A Per-unit contribution margin approach LO 3-1 Agassi Corporation sella products for $33 each that have variable costs of $19 per unit Agassi's annual fioxed cost is $309,400. Required: Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars References eBook &Resources; Worksheet Difficulty: 1 Easy Exercise 3-2A Per-unit Leaming Objective: 03-01 Determine 3

Explanation / Answer

selling price

less variable cost

contribution margin per unit

contribution margin ratio = contribution margin/selling price = 14/33

0.424

Fixed cost

309400

Break even point in units

fixed cost/ contribution margin = 309400/.14

22100

Break even point in sales

fixed cost/ contribution margin ratio = 309400/.424

729300