Ashley Furniture Provided the Following Data for Next Month

Essay

Ashley Furniture provided the following data for next month:
Selling sales price per unit $500
Variable manufacturing costs per unit $150
Fixed manufacturing costs per unit $ 75
Variable selling costs per unit $ 50
Fixed selling costs per unit $ 50
Expected production and sales 2,000 units
A. Calculate contribution margin per unit.
B. Calculate the contribution margin ratio.
C. Calculate the break-even point in units.
D. Calculate the sales in dollars needed to obtain on operating income of $20,000.