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Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $13,56 per string. The variable costs per string are
Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $13,56 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $570,500 per year. Administrative cost (all fixed) totals $444,600. Comer expects to sell 246,500 strings of light next year Required: 1. Calculate the break-even point in units. 3.56 X units 2. Calculate the margin of safety in units. 152,600 X units 3. Calculate the margin of safety in dollars. $ 42,400 X Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year, Unit variable cost is $21 (Includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the number of pairs of shoes Chillmax must sell to earn operating income of $81,900. 2,000 x S Feedback 2. Check your answer by preparing a contribution margin income statement based on the number of units calculated. Enter amounts as positive numbers. Chilimax Company Contribution Margin Income Statement At Target Pairs of Shoes Sold Total Sales 120,000 X Total variable cost 42,000 X Total contribution margin 78,000 X Total fixed cost 78.000 Operating Income 0 X
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