Marginal Costing Basics - Higher Difficulty Problems
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Q. A business has fixed costs of $50,000 and a contribution margin of $10 per unit. How many units must be sold to break even?
Q. A company expects to sell 1,000 units at a price of $20 each. If the variable cost per unit is $12, what is the expected total contribution margin?
Q. A company incurs a total cost of $120,000 to produce 10,000 units. If fixed costs are $40,000, what is the marginal cost per unit?
Q. A company produces 10,000 units of a product at a total cost of $50,000. If the fixed costs are $20,000, what is the marginal cost per unit?
Q. A product has a selling price of $50 and variable costs of $30. If fixed costs are $100,000, what is the break-even sales revenue?
Q. If a company has a contribution margin of $15 per unit and sells 2,000 units, what is the total contribution margin?
Q. If a company has a margin of safety of $20,000 and its total sales are $100,000, what is the break-even sales?
Q. If a company has a selling price of $15 per unit, variable cost of $9 per unit, and fixed costs of $30,000, what is the contribution margin per unit?
Q. If the total variable costs for producing 2,000 units are $24,000, what is the variable cost per unit?
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