1.

CONTRIBUTION MARGIN PER UNIT

CONTRIBUTION MARGIN RATIO

FIED EPENSES

OPERATING INCOME

UNITS SOLD

VARIABLE EPENSES

B.

BREAKEVEN SALES SALES IN UNITS

FIED COST

MARGIN OF SAFETY IN UNITS

SALE PRICE PER UNIT

TARGET SALES IN UNITS

VARIABLE COST

C.

CONTRIBUTION MARGIN

CONTRIBUTION MARGIN PER UNIT

FIED COST

OPERATING INCOME

SALES

VARIABLE COST

TARGET SALES IN UNITS

3.

BREAKEVEN SALES IN DOLLARS

FIED COST

SALES PRICE PER UNIT

TARGET SALES IN DOLLARS

VARIABLE COST

1. Determine the number of tubs John must sell per show to break even. 2. Assume John wants to earn a profit of $1,080 per show. a. b. c. Determine the sales volume in units necessary to earn the desired profit. Determine the sales volume in dollars necessary to earn the desired profit. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. 3. Determine the margin of safety between the sales volume at the breakeven point and the sales volume required to earn the desired profit. Determine the margin of safety in both sales dollars, units, and as a percentage