Contribution Margin Analysis
Contribution Margin Analysis
I am totally lost. I do not know where to begin. Can someone please point me in the right direction?
Sales Volume (units) 24,000
Sales price per unit $10
Variable Costs (Total) ?
Contribution Margin (Total) ?
Cont. Margin per unit (rounded) $4
Fixed Costs (total) ?
Fixed Costs per unit (rounded) ?
Profit $20,000
How do I find the Variable Costs (total)?
How do I find the Cont. Margin (total)?
How do I find Fixed Costs (total)?
How do I find Cost per unit (rounded)?
If the exercise above were changed around, and the Sales Volume (units) was missing, and I had the sales price per unit and the variable costs (total), how do I solve for the Sales Volume? Of Contribution margin (total), fixed costs (total), or the profit?
What am I missing? If I needed to find the sales price per unit, what do I need to calculate? What if I needed the Contribution margin per unit, fixed costs (total) or fixed costs per unit?
It can’t be as difficult as I see it now – can it? Please point me in the right direction.
Thanks