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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of

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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar $240 per kayak Resin and supplies $180 per kayak Finishing kit (seat, rudder, ropes, etc.) $180 per kayak Labor $490 per kayak Selling and administrative expenses--variable $470 per kayak Selling and administrative expenses---fixed $ 192,600 per year Manufacturing overhead --fixed $240,000 per year Bill and Diane have asked you to provide a cost-volume-pront analysis, to help them finalize the budget projections for the upcoming year, Bill has informed you that the selling price of the composite kayak will be $2,400 Bill and Diane have asked you to provide a cost-volume-profit analysis to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,400. Calculate variable costs per unit Variable costs $ per unit Assistance Used e Textbook and Media e Textbook Determine the unit contribution margin. Determine the unit contribution margin. Contribution margin $ per unit Assist e Textbook and Media eTextbook Using the unit contribution margin, determine the break-even point in units for this product line, Break-even point units AprState Uset eTexLOOK and vuld e Textbook Assume that Current Designs plans to earn net income of $394,800 on this product line. Using the unit contribution margin calculate the number of units that need to be sold to achieve this goal. Number of units to be sold units e Textbook and Media Based on the most recent sales forecast Current Designs plans to sell 1.030 units of this model Calculate the margin of safety Based on the most recent sales forecast, Current Designs plans to sell 1,030 units of this model. Calculate the margin of safety and the margin of safety ratio. (Round percentage to 1 decimal place, 25.5%) Margin of safety Margin of safety ratio 26 e Textbook and Media

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