Class exercise-Cost-Volume-Profit Relationships (2 marks) Information regarding a product manufactured and sold by Schiffman is shown below: 2. 3. Maximum capacity with existing facilities Total fixed costs per month.. Variable cost per unit...... Sales price per unit.. Refer to the above data. The contribution margin ratio for this product is: a 20%. b 25%. 30%. d 40%. 4,000 units $50,000 $42.00 $56.00 Refer to the above data. The number of units Schiffman must sell to break even is: (rounded) a 3,927. b 3572. 4,823. d 5,140. Refer to the above data. The dollar sales volume necessary to produce monthly operating income of $12,000 before taxes is: a $188,000. c $288,000. b $186,000. d $248,000. Use the following data for questions 4 and 5. The monthly high and low levels of units and total manufacturing overhead for Ratnere Company are shown below: 4. a 5. Highest observed level. Lowest observed level.. Units Manufacturing Overhead 117,000 81,000 $306,000 234,000 Refer to the above data. The cost formula for Ratnere's monthly overhead cost can be expressed as: $2.00 average cost per unit. b $1.75 average cost per unit. $24,000 fixed cost plus $2.00 per unit. d $72,000 fixed cost+ $2.00 per unit. Refer to the above data. In a month in which 30,000 equivalent full units are produced, Ratnere's manufacturing overhead should be approximately: a $52,500. C b $79,500. $132,000. d $90,500.