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ActualmonthlysalesforMay were 10,000 units.The sellingprice was$50,while the variable costs were $30 per unit.Besides that, the fixed costs were$60,000per month and the company had a 40

  1. ActualmonthlysalesforMay were 10,000 units.The sellingprice was$50,while the variable costs were $30 per unit.Besides that, the fixed costs were$60,000per month and the company had a 40 percent tax rate.

Required:

Determineeachofthefollowingvalues:

  1. What wasthecontributionmarginper unit?
  2. Whatwasthebreakevenpointinunits?
  3. Whatwasthebreakevenpointin salesdollars?
  4. Howmanyunitswouldneedtobesoldtoobtainapretaxprofitof$90,000?
  5. Whatisthemarginofsafetyinunits?
  6. PrepareavariablecostingincomestatementforMay.

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