If the limiting factor is demand (i.e., unit of sales), the more profitableproduct is the one with the higher contribution per unit.
举一反三
- The contribution margin is equal to the _____ per unit minus the _____per unit.
- If the sales price per unit is $20, the unit contribution margin is $8, and total fixed costs are $24,000, the break‑even point in units is: A: a. 3,000 B: b. 1,200 C: c. 857 D: d. 2,000
- The higher the unit price is, the more profit maximization can be realized.
- If fixed expenses were thesame and contribution margin per unit was cut in half, then the break‑evenpoint would:
- The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per year Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)?