Information concerning a product produced by Hansen Company appears here: Sales
ID: 2530284 • Letter: I
Question
Information concerning a product produced by Hansen Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs 180 $100 s 720,000 0204 17 Required Determine the following: eBook a. Contribution margin per unit. b. Number of units that Hansen must sell to break even c. Sales level in units that Hansen must reach to earn a profit of $240,000. a Contribution margin per unit b. Break-even in units c Required sales in units K Prev42 of 80Next>Explanation / Answer
a) Contribution margin per unit = 180-100 = 80 per unit
b) Break even point = 720000/80 = 9000 units
c) Required sales in units = (720000+240000)/80 = 12000 units