12.

Miller Metal Co. makes a single product that sells for $44 per unit. Variable costs are $26.8 per unit, and fixed costs total $65,120 per month.

Required:
a.	Calculate the number of units that must be sold each month for the firm to break even. (Do not round your intermediate calculations.)
	Break even volume: __________ units

b.	Assume current sales are $412,000. Calculate the margin of safety and the margin of safety ratio.
	Margin of Safety: _________ Margin of Safety Ratio: _________%

c.	Calculate operating income if 5,900 units are sold in a month. (Do not round your intermediate calculations.)
	___________________________ _________________________

d.	Calculate operating income if the selling price is raised to $47 per unit, advertising expenditures are increased by $8,000 per month, and monthly unit sales volume becomes 6,700 units. (Do not round your intermediate calculations.)
	___________________________ _________________________

e.

Assume that the firm adds another product to its product line and that the new product sells for $21 per unit, has variable costs of $16 per unit, and causes fixed expenses in total to increase to $82,000 per month. Calculate the firm's operating income if 5,900 units of the original product and 4,900 units of the new product are sold each month. For the original product, use the selling price and variable cost data given in the problem statement. (Do not round your intermediate calculations.)

___________________________ _________________________

f.	Calculate the firm's operating income if 3,600 units of the original product and 7,200 units of the new product are sold each month. (Do not round your intermediate calculations.)
	___________________________ _________________________

g.	Why operating income is different in parts e and f, even though sales totaled 10,800 units in each case.
	_______The contribution margin ratio for each product is different. ______The contribution margin ratio for each product is same.