29 Jun Question Dester Manufacturing
QuestionQuestion
Dester Manufacturing
Dester Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $20 per unit. Variable selling expenses are $5 per unit, annual fixed manufacturing costs are $187,000, and fixed selling and administrative costs are $113,000 per year.
Required
Determine the break-even point in units and dollars using each of the following approaches:
Equation method.
Contribution margin per unit.
Contribution margin ratio.
Confirm your results by preparing a contribution margin income statement for the break-even sales volu
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