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Business, 29.02.2020 05:20 isabelle1670

6) For the past few years your company has sold 50,000 units of goods each year at a selling price of $26/unit. Fixed production costs were $300,000 and variable costs were $9 per unit. The Marketing Department expects 58,000 units for next year due to a new advertising campaign. Assume they are correct about the sales expectation and the costs remain the same. (a) What will be your company’s average total cost per unit next year? (b) What will be the marginal contribution rate? (c) What will be the profit margin next year? (d) What is the breakeven volume?

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