Franklin, Inc., produces one model of seat cover. Partial information for the company follows:

Required:
1. Complete the table.
2. Calculate Franklin’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each seat cover for $30.
3. Consider the contribution margins just calculated and total fixed costs for the company.
Determine whether Franklin’s break-even point will be more or less than 1,500 units.
4. Calculate Franklin’s break-even point in units and salesrevenue.

Transcribed Image Text:

Number of seat covers produced and sold ,500,4,200 Total costs $15,750 Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $31.00