Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variable costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.

Results are below.

Explanation:

Giving the following information:

Selling price= $680

Unitary variable cost= $408

Fixed cost= $63,920

To calculate the contribution margin and break-even point in units, we need to use the following formula:

Unitary contribution margin= selling price - unitary variable cost

Break-even point in units= fixed costs/ contribution margin per unit

a:

Unitary contribution margin= 680 - 408= $272

Break-even point in units= 63,920 / 272

Break-even point in units= 235

b:

Unitary contribution margin= 544 - 408= $136

Break-even point in units= 63,920 / 136

Break-even point in units= 470

c:

Unitary contribution margin= 680 - 340= $340

Break-even point in units= 63,920 / 340

Break-even point in units= 188

d:

Unitary contribution margin= 680 - 408= $272

Break-even point in units= 53,040 / 272

Break-even point in units= 195

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

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