Suppose that Adams Company sells a product for $20. Unit costs are as follows:

Direct materials $3.90

Direct labor 1.40

Variable factory overhead 2.10

Variable selling and administrative expense 1.60

Total fixed factory overhead is $52,000 per year, and total fixed selling and administrative

expense is $38,530.

Required:

1. Calculate the variable cost per unit and the contribution margin per unit.

2. Calculate the contribution margin ratio and the variable cost ratio.

3. Calculate the break-even units.

4. Prepare a contribution margin income statement at the break-even number of units.

Can someone please show me how to figure these?
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1 Answer

me assume yu tri tu sae that list neer top is kost per yunit...

3.90+1.4+2.1+1.60=9$ yunit kost (direkt kost)

& yu hav fixed kost=52,000+38,530=90,530$

Sell stuf for 20$ eech, so direkt profit=20-9=11$ eech

Brake even...11x=90,530, so x=90,530/11=8,230

yu gotta sell 8,230 thangs tu brake even
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