Marginal Costing Basics - Applications
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Q. A company has a selling price of $300, variable costs of $180, and fixed costs of $60,000. What is the break-even sales revenue?
Q. A company has fixed costs of $20,000 and a contribution margin ratio of 25%. What is the sales revenue needed to break even?
Q. A product sells for $150 and has variable costs of $90. What is the contribution margin ratio?
Q. If a company expects to sell 1,000 units at a selling price of $250 each and has variable costs of $150 per unit, what is the total contribution?
Q. If a company has a contribution margin of $25 per unit and sells 1,200 units, what is the total contribution?
Q. If a company has a contribution margin of $30 per unit and fixed costs of $12,000, how many units must be sold to achieve a target profit of $3,000?
Q. If a company has fixed costs of $10,000 and a contribution margin per unit of $50, how many units must be sold to break even?
Q. If the contribution margin per unit is $40 and fixed costs are $20,000, how many units need to be sold to achieve a target profit of $10,000?
Q. If the selling price is $300 and the variable cost is $180, what is the contribution margin per unit?
Q. What is the contribution margin if the selling price is $200, variable costs are $120, and fixed costs are $50?
Q. What is the effect on contribution margin if variable costs increase by $20 while the selling price remains the same?
Q. What is the effect on the contribution margin if fixed costs increase by $5,000 while sales and variable costs remain unchanged?
Q. What is the margin of safety if the break-even sales are $200,000 and the actual sales are $300,000?
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