Question
a) NoFly Corporation sells three different models of a mosquito zapper. Model A12 sells for $52 and has variable costs of $37. Model B22 sells
a) NoFly Corporation sells three different models of a mosquito zapper. Model A12 sells for $52 and has variable costs of $37. Model B22 sells for $104 and has variable costs of $80. Model C124 sells for $419 and has variable costs of $310. The sales mix of the three models is A12, 59%; B22, 29%; and C124, 12%. What is the weighted-average unit contribution margin? (Round answer to 2 decimal places, e.g. 15.50.)
Weighted-Average Unit Contribution Margin |
b) The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows.
Salaries | $7,200 | per month | |
Utilities | 2,000 | per month | |
Depreciation | 1,600 | per month | |
Maintenance | 900 | per month | |
Maid service | 7 | per room | |
Other costs | 32 | per room |
If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started