1. Answer each item below: 1. In September, Smith Company had the following financial statement amounts related to producing 1,000 units: Direct materials (VC) $30,000 Depreciation expense(FC) 12,000 Sales revenue 88,000 Direct labor(VC) 10,000 Rent expense(FC) 13,000 What is the contribution margin per unit? 2. Keaubie Company has variable costs which are 35% of its unit selling price and fixed costs of $357,500. How much sales will Keaubie Company report at its break-even point in dollars? 3. Maddie, Inc. wants to sell to earn a profit of $240,000. If the unit sales price is $45, unit variable cost is $25, and total fixed costs are $175,000, how many units must be sold to earn income of $240,000? $425,000? 4. The selling price of Product XYZ is $15.00. Variable unit costs are $7 and fixed costs are $25,000. Find: a. Contribution margin per unit b. Contribution margin ratio c. Break-even in units and dollars d. Margin of safety and margin of safety ratio if 4500 units are expected to be sold. 5. Charlie, Inc. had total sales of $500,000. Their contribution margin ratio is 40%. If this is their break-even in dollars, what is the amount of their fixed costs? 6. Charlie, Inc. had total sales of $500,000. Their contribution margin ratio is 40%. If their fixed costs are $125,000, how much net income do they have? 7. Complete a CVP Income Statement using the following data: Sales: $525,000; Total VC: $320,000; Total FC: $100,000 8. Charlie Company sells a product Y for $30 per unit. The variable cost per unit is $12 and FC costs are $57,600. a. What is break-even in units? b. If Charlie Company sells 400 units after reaching break-even, what is the amount of their net income? 9. Use the information below to find items a-d Product A Product B $100 $70 $ 70 $50 Product C $150 $100 Selling Price per unit VC per unit Contribution Margin Sales Mix Fixed Costs: $550,000 20% 70% 5% a. Find the contribution margin per unit b. Calculate the Weighted Average Contribution Margin per Unit c. Find Break-even in units (if needed, round to whole unit) d. Find Break-even in units per product (if needed, round to whole unit) 10. Use the information below to answer items a-d Division A 22% 45% CM ratio Sales Mix Fixed Costs: $375,500 Division B 31% 35% Division C 47% 20% a. Calculate the Weighted Average Contribution Margin Ratio b. Find Break-even in Sales Dollars c. Find Break-even in Sales Dollars per Division 11. Degree of Operating Leverage Data for Charlie Data for Maddie Company $650,000 Sales $650,000 Less VC 165,000 425,000 CM 485,000 225,000 Less FC 365,000 105,000 NI 120,000 120,000 a. Find the DOL for each company (if needed, round to two decimal places) b. Assuming each company has a 7% increase in sales, compute the expected percent increase in profits and the expected dollar amount of NI. 12. Contribution margin per unit of Limited Resource a. Data for Lucy Company: Product Contribution Margin Per Unit Limited Resource Contribution (Machine Hours Margin per unit of Required) limited resource .45 .08 Product A Product B $55 $28 1. Find the Contribution margin per unit of limited resource 2. If total machine hours can be increased by 200 hours, which product would they prefer to manufacture? If they did manufacture that produce, what is the total contribution margin for the 200 hours