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The Following Information Is for a Product Manufactured and Sold

question 29

Essay

The following information is for a product manufactured and sold by Drake Company:
Sales price per unit: $100
Variable cost per unit: $30
Total annual fixed costs: $350,000
Required:
1)Calculate the contribution margin per unit.
2)How many units must Crane sell to break even?
3)How many units must Crane sell to achieve a profit of $35,000?


Definitions:

Detailed Cost Estimates

An in-depth prediction of the likely costs of a project, based on detailed information and analysis.

Estimate At Completion

A forecasting tool used in project management to predict the total cost of a project at its completion.

Budgeted Cost

The estimated financial expenditure for a project, activity, or operation, typically set during the planning phase.

Planned Value

In project management, it represents the estimated monetary value of the work planned to be done on a project at a given point in time.

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