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8 Comfort Decor manufactures decorative chairs. In preparing for next year's operations, management has developed the following estimates: Total Per Unit Sales (20,000 units) 1,200,000
8 Comfort Decor manufactures decorative chairs. In preparing for next year's operations, management has developed the following estimates: Total Per Unit Sales (20,000 units) 1,200,000 60.00 Direct Materials 200,000 10.00 Direct labor 50,000 2.50 Manufacturing overhead Variable 70,000 3.50 Fixed 80,000 4.00 Selling & Adminstrative Variable 100,000 5.00 Fixed 30,000 1.50 25 pts Required: Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in dollar sales. d. Margin of safety percentage. e. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income
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