Problem 3 (12-17 min)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.InstructionsDetermine the contribution margin in dollars, per unit, and as a ratio.Using the contribution margin technique, compute the break-even point in dollars and in units.

Contribution margin is a product’s price minus all associated variable costs, resulting in the…

Answered: Determine the contribution margin in…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PA: A company sells small motors as a component part to automobiles. The Model 101 motor sells for $850...

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Problem 3 (12-17 min)

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

Determine the contribution margin in dollars, per unit, and as a ratio.
Using the contribution margin technique, compute the break-even point in dollars and in units.

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