Answer the following questions with the associated solutions.

1. If sales is $13,000 and variable costs is $7,000, what is the contribution margin? (2 points)

13,000-7,000=$6,000

2. Answer the questions by looking at the worksheet below.

Break-Even Analysis Worksheet

Store: Sallies Accessories

Location: 129 Fashion Way, Skokie, Illinois

Product Line: Jewelry

Period: Six months beginning June 2008

Item	Unit Price (P)	Variable Costs per Unit (V)	Fixed Costs (F)	Units to Break Even
Watches	$49.99	$23.25	$2,000	75
Necklaces	$79.95	$29.50	$2,000	40
Rings	$10	$40.00	$2,000	40
Bracelets	$19.95	$4.50	$2,000	130
Earrings	$41.50	$12.00	$2,000	68

1. What are the total fixed costs assigned to the jewelry department for the six-month period? (2 points)
   1. $10,000
2. What is the break-even point for necklaces, bracelets, watches, and earrings? (4 points)
   1. Necklaces 39.64=40 units
   2. Bracelets 129.45= 130 units
   3. Watches 74.78 = 75 units
   4. Earrings 67.8 = 68 units
3. What would happen to the break-even point if Sallie raised the price of the bracelets by 0.50 cents and reduced it by 0.50 cents? (2 points)
   1. Raised by $0.50 126.39 = 127 units
   2. Reduced by $0.50 133.78 = 134 units
4. How much does a ring cost at Sallies? (2 points)
   1. 2000/x=40 x=50 50-40=$10 per ring

3. Windy River sells each Sunset Bracelet for $13. The unit variable cost for the bracelet is $7.65. The amount of monthly fixed costs that sales of the Sunset Bracelet are expected to contribute is $280. How many units of the Sunset Bracelet must Windy River sell to break even? If Windy River sells 100 units after the Break Even Point, what is their profit and their revenue? (6 points)

Price per unit	13
Variable cost	7.65
Contribution margin	5.35

280/5.35=52.34= 53 break even units

Sold 153 units

Sales	$1,989
Variable cost	$(1,170.45)
Contribution margin	$818.55
Fixed cost	$(280)
Sales revenue	$538.55

4. Dani sells mirrors at weekend craft shows for $75 each. She makes the mirror frames out of colored pieces of glass and ceramic tile. The mirrors are very popular, and Dani has more orders than she can fill.

Help Dani figure out how many mirrors she has to sell to break even. Dani estimates that her variable costs are $25 per mirror and her fixed costs are $1,000. (2 points)

75-25=50

1000/50=20

Dani has to sell 20 mirrors to break even

can someone to check my work and tell me if these are correct