3. Trendy Ten produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. Read the requirements. Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. (Enter the amount to the nearest cent.) Sales price per unit - Variable cost per unit The contribution margin per package is Compute the contribution margin ratio. (Enter the ratio as a whole percent.) Begin by identifying the formula to compute the contribution margin ratio. Contribution margin per unit Sales price per unit + $ 1.10 + 50 %. The breakeven point in units is Find the breakeven point in dollars using the contribution margin approach. Begin by identifying the formula to compute the breakeven point in dollars. Operating income ( Fixed expenses The contribution margin ratio is Requirement 2. Find the breakeven point in units and dollars. Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. ( Fixed expenses Operating income ) Contribution margin per unit = Breakeven sales in units 110,000+0/1.10 = $100,000 100,000 Contribution margin per unit 2.20-1.10 = $1.10 $ 220,000 Contribution margin ratio 1.10 2.20 20 = 5 or 50% ATROD ) = Contribution margin ratio = Breakeven sales in dollars 110,000+ 0/50% - $220,000 The breakeven point in dollars is Requirement 3. Find the number of packages Trendy Ten needs to sell to earn a $27,500 operating income. The number of packages to achieve an operating income of $27,500 is 125,000 1: Requirements 1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the breakeven point in units and in dollars. 3. Find the number of packages Trendy Ten needs to sell to earn a $27,500 operating income.

Trendy Ten produces sports socks. The company has fixed expenses of $110.000 and variable expenses of $1.10 per package. Each package sells for $2.20 Read the requirements 1. Requirement 1. Compute the contribution margin per package and the contribution margin ratio Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package (Enter the amount to the nearest cent) = Contribution margin per unit The contribution margin per package is Compute the contribution margin ratio. (Enter the ratio as a whole percent) Begin by identifying the formula to compute the contribution margin ratio. 2.201.10=.5or50% The contribution margin ratio is % Requirement 2. Find the breakeven point in units and dollars Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach. 1. = Breakeven sales in units Find the breakeven point in dollars using the contribution margin approach Begin by identifying the formula to compute the breakeven point in doltars. The breakeven point in dollars is Requirement 3. Find the number of packages Trendy Ten needs to sell to earn a $27,500 operating income. The number of packages to achieve an operating income of $27,500 is 1: Pequirements 1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the breakeven point in units and in dollars