Hammond Company produces a single product with a price of ₱12/unit, variable cost per unit of ₱3, and total fixed cost of ₱7,200. 1. Compute the break-even sales in units and sales amount. 2. Compute the variable cost ratio. Compute the contribution margin ratio.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...
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Hammond Company produces a single product with a price of ₱12/unit, variable cost per unit of ₱3, and
total fixed cost of ₱7,200.
1. Compute the break-even sales in units and sales amount.
2. Compute the variable cost ratio. Compute the contribution margin ratio.

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