Question

Blue Spruce Company has the following information available for September 2017.

Unit selling price of video game consoles $468 Unit
Variable costs $328
Total fixed costs $63,000
Units sold 702

Required:
a. Compute the unit contribution margin.
b. Compute Blue Spruce 's break-even point in units.

Answer 1

$140

450

Step-by-step explanation:

unit contribution margin = price - Unit

Variable costs = $468 - $328 = $140

Breakeven point is the number of units produced and sold at which net income is equal to zero.

Q = F / P - V

$63,000 / 140 = 450

I hope my answer helps you