8. In the month of September, Matlock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margin technique, compute the break-even point in dollars and in units.

(a) $9; 30%

(b) $21,000; 700 units

Explanation:

Given that,

Units sold = 800

Average sales price = $30

Fixed costs = $6,300

Variable costs = 70% of sales

(a) Contribution margin per unit:

= Selling price per unit - Variable cost per unit

= $30 - (70% × $30)

= $30 - $21

= $9

Contribution margin ratio:

= Contribution margin per unit ÷ Selling price

= $9 ÷ $30

= 30%

(b) Break-even sales (in dollars):

= Fixed costs ÷ Contribution margin ratio

= $6,300 ÷ 30%

= $21,000

Break-even sales (in units):

= Fixed costs ÷ Contribution margin per unit

= $6,300 ÷ $9

= 700 units

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: