1. Khaling Company sold 27,150 units last year at $15.60 each. Variable cost was $11.40, and total fixed cost was $118,020.

1.	income statement for Khaling for last year?
2.	break-even point in units.
3.	units that Khaling must sell to earn operating income of $10,080 this year?

2. Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 17,960 DVDs and 4,490 equipment sets. Information on the two products is as follows:

	DVDs	Equipment
Sets
Price	$8.40	$24.60
Variable cost per unit	4.50	15.40

Total fixed cost is $89,280.

1.	sales mix of DVDs and equipment sets?
2.	break-even quantity of each product.

3. Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,600 portable grills, 46,800 stationary grills, and 5,200 smokers. Information on the three models is as follows:

	Portable	Stationary	Smokers
Price	$89	$204	$251
Variable cost
per unit	50	126	142

Total fixed cost is $2,032,320.

1.	sales mix of portable grills to stationary grills to smokers?
2.	break-even quantity of each product.
3.	income statement for Texas-Q for the coming year. contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places;
4.	margin of safety for the coming year.

4. 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $352,600. The variable cost per unit is $0.15. What price does Jefferson charge per unit?

2. Sooner Industries charges a price of $116 and has fixed cost of $394,000. Next year, Sooner expects to sell 14,400 units and make operating income of $179,000. What is the variable cost per unit? What is the contribution margin ratio? Enter the contribution margin ratio as a percentage, rounded to two decimal places.

Variable cost per unit	$fill in the blank 2
Contribution margin ratio	fill in the blank 3	%

3. Last year, Jasper Company earned operating income of $18,240 with a contribution margin ratio of 0.2. Actual revenue was $228,000. Calculate the total fixed cost.

4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $169,400 and 28,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

Price	$fill in the blank 5
Variable cost per unit	$fill in the blank 6
Contribution margin per unit	$fill in the blank 7