Monday, June 13, 2016

A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your answers to 2 decimal places.)

A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your answers to 2 decimal places.)

    

(1) Compute the contribution margin per pair.

(2) Compute the contribution margin ratio.             


Blanchard Company manufactures a single product that sells for $210 per unit and whose total variable costs are $168 per unit. The company’s annual fixed costs are $575,400.     


(a) Compute the company's contribution margin per unit.

(b) Compute the company's contribution margin ratio.

(c) Compute the company's break-even point in units.

(d) Compute the company's break-even point in dollars of sales.                    



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