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

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(Click the icon to view the information.)Read the requirements

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.

Requirement 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?

The total contribution margin is

.

b. What is the total variable expense?

The total variable expense is

.

c. How many units were sold?

units were sold.

d. What is the per-unit variable expense?

The per-unit variable expense is

.

e. What is the per-unit contribution margin?

The per-unit contribution margin is

.

Now fill in the missing numbers in the table. (Enter the percentages as whole numbers, "XX")

	Total	Per Unit	%
Sales. . . . . . . . . . . . . . . . . .	$115,000	$50		%
Variable expenses. . . . . . . .				%
Contribution margin. . . . . .				%
Fixed expenses. . . . . . . . . .	11,500
Operating income. . . . . . . .	$46,000

Requirement 2. Answer the following questions about breakeven analysis:

a. What is the breakeven point in units?

Begin by identifying the formula to compute the breakeven point in units.

(

+

)

=

Breakeven sales in units

The breakeven point in units is

.

b. What is the breakeven point in sales dollars?

Begin by identifying the formula to compute the breakeven point in sales dollars.

(

+

)

=

Breakeven sales in dollars

The breakeven point in sales dollars is

.

Requirement 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

$58,000?

The company must sell

units in order to earn a profit of $58,000.

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

Begin by identifying the formula to compute the current margin of safety in units.

=

Margin of safety in units

The current margin of safety in units is

.

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

Begin by identifying the formula to compute the margin of safety in dollars.

=

Margin of safety in dollars

The margin of safety in dollars is

.

d. What is the margin of safety in percentage?

Begin by identifying the formula to compute the margin of safety in percentage.

					Margin of safety as a
				=	percentage of budgeted sales

(Round the percentage to the nearest tenth percent, X.X%.)

The margin of safety percentage is

%.

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

$115,000

$50

?

Variable expenses. . . . . . .

?

?

?

Contribution margin. . . . . .

?

?

?

Fixed expenses. . . . . . . . . .

11,500

Operating income. . . . . . . .

$46,000