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Ashley Furniture Provided the Following Data for Next Month A What Is Contribution Margin Per Unit?
B

question 49

Essay

Ashley Furniture provided the following data for next month:
 Selling price per unit $500 Variable manufacturing costs per unit $150 Fixed manufacturing costs per unit $75 Variable selling costs per unit $50 Fixed selling costs per unit $50 Expected production and sales 2,000 units \begin{array}{lr}\text { Selling price per unit } & \$ 500 \\\text { Variable manufacturing costs per unit } & \$ 150 \\\text { Fixed manufacturing costs per unit } & \$ 75 \\\text { Variable selling costs per unit } & \$ 50 \\\text { Fixed selling costs per unit } & \$ 50 \\\text { Expected production and sales } & 2,000 \text { units }\end{array} A. What is contribution margin per unit?
B. What is the contribution margin ratio?
C. What is the break-even point in units?
D. What are the sales in dollars needed to obtain on operating income of $20,000\$ 20,000 ?


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