Question:
Seton Company manufactures a single product that sells for $360 per unit and whose total variable costs are $270 per unit. The company's annual fixed costs are $1,125,000.
(1) Use this information to compute the company's
(a) Contribution margin,
(b) Contribution margin ratio,
(c) Break-even point in units, and
(d) Break-even point in dollars of sales.
(2) Draw a CVP chart for the company.