Bowery Company manufactures a single product that sells for $100 per unit. The company projects sales of 400 units per month. Projected costs follow.
|
type of Cost
|
Manufacturing
|
Non-manufacturing
|
|
Variable
|
$10,000
|
$6,000
|
|
Non-variable
|
13,000
|
5,000
|
1. Prepare a contribution margin income statement for the month.
2. What is the contribution margin ratio?
3. What volume, in terms of units, must the company sell to break even?