Contribution Margin and Breakeven point Elizabeth McClary recently begin a small snowboard company

Contribution Margin and Breakeven point Elizabeth McClary recently begin a small snowboard company called Pure Powder. She and her staff have assembled cost information regarding the snowboard Variable unit cost per (per snowboard):

Direct materials $25

Direct labor 20

Variable manufacturing overhead 7

Variable Selling and administrative 3

Fixed cost( for period):

Fixed manufacturing overhead 24,3000

Fixed selling and administrative 40,-075

The snowboards sell for $180

What is the unit cost contributing margin for snowboard?

What is the breakeven point in units?

Explain what the contribution margin is and why? SOLUTION