ACC 212 - Chapter 18 review for EXAM III

how to calculate Contribution Margin?

• variable costs / Sales price = Contribution Margin

• Sales price - variable costs = Contribution Margin

• Sales price + variable costs = Contribution Margin

How to calculate Contribution Margin Ratio?

• Contribution Margin per Unit - Sales price per Unit = Contribution Ratio

• Contribution Margin per Unit * Sales price per Unit = Contribution Ratio

• Contribution Margin / Sales price = Contribution Ratio

how to calculate Break-Even in Units?

• Total Fixed cost / Contribution Margin

• Total Fixed Cost / Contribution Margin Ratio

• Contribution Margin per Unit / Sales price per Unit

How do you calculate Break-Even in Dollars?

• Total Fixed cost / Contribution Margin

• (Total Fixed Costs + Target Profit) / Contribution Margin

• Total Fixed Cost / Contribution Margin Ratio

how to calculate Target Profits in Units?

• (Total Fixed Cost + Target Profit) / Contribution Margin Ratio

• (Total Fixed Costs + Target Profit) / Contribution Margin

• Total Fixed Cost / Contribution Margin Ratio

how to calculate Target Profits in Dollars?

• (Total Fixed Cost + Target Profit) / Contribution Margin Ratio

• (Total Fixed Costs + Target Profit) / Contribution Margin

• Total Fixed cost / Contribution Margin

Sales Price $450.00 per unit

Target Profit  $12,000.00 

Copper $35.00 per unit

Metal $26.00 per unit

Plastic $14.00 per unit

Factory Rent $4,500.00 per month

Factory Insurance $1,250.00 per month

What is the Contribution Margin?

Sales Price $450.00 per unit

Target Profit  $12,000.00 

Copper $35.00 per unit

Metal $26.00 per unit

Plastic $14.00 per unit

Factory Rent $4,500.00 per month

Factory Insurance $1,250.00 per month

What is the Contribution Margin Ratio?

write---% (round)

Sales Price $450.00 per unit

Target Profit  $12,000.00 

Copper $35.00 per unit

Metal $26.00 per unit

Plastic $14.00 per unit

Factory Rent $4,500.00 per month

Factory Insurance $1,250.00 per month

What is the Break-Even in Units? (round to nearest decimal)

Sales Price $450.00 per unit

Target Profit  $12,000.00 

Copper $35.00 per unit

Metal $26.00 per unit

Plastic $14.00 per unit

Factory Rent $4,500.00 per month

Factory Insurance $1,250.00 per month

What is the Break-Even in Dollars?

(write commas if your answer is > 100)