Question
8. MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the
8. MURDER TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price $ 30 Variable cost per unit 6 Fixed costs per year 360,000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units. e. Determine the operating income if annual sales total 60,000 units.
10. The following information relates to the only product sold by Mastrolia Manufacturing.
Sales price per unit | $ | 45 | |
Variable cost per unit | 27 | ||
Fixed costs per year | 281,000 | ||
a. Compute the contribution margin ratio and the dollar sales volume required to break even.
b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
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