Contribution margin 100,000 Less: fixed expenses 100,000 Net income $ - 7-1 Contribution-Margin Approach Consider the following information developed by the accountant at Curl, Inc.: For each additional surf board sold, Curl generates $200 in contribution margin. Sales (500 surf boards) Less: variable expenses Contribution margin Less: fixed expenses Net income Total $250,000 150,000 $100,000 80,000 $ 20,000 Per Unit $ 500 300 $ 200 Percent 100% 60% 40% 7-2 Graphing Cost-Volume-Profit Relationships…
Words 855 - Pages 4