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Company manufactures and sells a single product. The company's sales and expenses for last year follow: Total Per Unit % Sales. . . . .

Company manufactures and sells a single product. The company's sales and expenses for last year follow:

Total

Per Unit

%

Sales. . . . . . . . . . . . . . .

$150,000

$20

?

Variable expenses. . . . . . .

?

?

?

Contribution margin. . . .

?

?

?

Fixed expenses. . . . . . . .

12,000

Operating income. . . . . . .

$25,500

1.

Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table:

a. What is the total contribution margin?

b. What is the total variable expense?

c. How many units were sold?

d. What is the per-unit variable expense?

e. What is the per-unit contribution margin?

2.

Answer the following questions about breakeven analysis:

a. What is the breakeven point in units?

b. What is the breakeven point in sales dollars?

3.

Answer the following questions about target profit analysis and safety margin:

a. How many units must the company sell in order to earn a profit of $45,000?

b. What is the current margin of safety in units?

c. What is the margin of safety in sales dollars?

d. What is the margin of safety in percentage?

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