Question: The information that follows was obtained from the account records of Gladstone Mfg. during a period when the company sold 100.000 units.
Sales $8,800.000
Variable Costs 2,400,000
Fixed Costs 6,016,000
Required:
A. Compute the company's per unit contribution margin and break even point.
B. How many units must Gladstone sell to produce a target net profit of $550,400?
C. Assume that Gladstone was able to reduce the variable cost per unit by $4. What selling price would management charge if it desired to maintain the current break even point?