Maritime Insurance projected revenue of $2 995 200, total variable costs of $778 752, and fixed costs

Question:

Maritime Insurance projected revenue of $2 995 200, total variable costs of $778 752, and fixed costs of $1 962 000 for the next year.
Answer each of the following independent questions, rounding all dollar amounts to the nearest dollar.
(a) How much are the and the contribution rate?
(b) How much of this product line does the business need to sell to break even?
(c) As a result of global losses due to hurricanes, the insurance rates have increased. If the business experienced an increase in total variable costs of 45%, and as a result increased its prices by 20% but maintained the same number of insurance contracts, how much of this product line does the business need to sell to break even?
(d) If a new insurance carrier was available and the same number of insurance contracts was projected, variable costs of 7% could be saved, but the fixed costs would increase by $9000. If the price of the insurance contracts stayed the same, what would be the resulting net income?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...