Question
A retail store sells a single product for $50 per unit. The following data is available: Variable cost per unit: $20 Fixed costs: $30,000 a.
A retail store sells a single product for $50 per unit. The following data is available:
- Variable cost per unit: $20
- Fixed costs: $30,000
a. Calculate the contribution margin per unit and the contribution margin ratio. b. Determine the breakeven point in units and dollars. c. If the store wants to achieve a target profit of $10,000, how many units must be sold? d. Calculate the margin of safety in units and as a percentage.
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
1118856996, 978-1118856994
