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Comprehensive Compute the answers to each of the following independent situations. a. Orlando Ray sells liquid and spray mouthwash in a sales mix of 1:2,
Comprehensive Compute the answers to each of the following independent situations. a. Orlando Ray sells liquid and spray mouthwash in a sales mix of 1:2, respectively. The liquid mouthwash has a contribution margin of $10 per unit; the spray's CM is $5 per unit. Annual fixed cost for the company is $260,000. How many units of spray mouthwash would Orlando Ray sell at the break-even point? units b. Piniella Company has a break-even point of 10,400 units. At BEP, variable cost is $16,640 and fixed cost is $4,160. If one unit over break-even is sold, what will be the company's pre-tax income? $ c. Montreal Company's product sells for $10 per bottle. Annual fixed costs are $561,600 and variable cost is 40 percent of selling price. How many units would Montreal Company need to sell to earn a 25 percent pre-tax profit on sales? Note: Round your answer up to the nearest whole unit (for example, round 61.2 units to 62 units). units d. York Company has a BEP of 7,280 units. The company currently sells 8,320 units at $65 each. What is the company's margin of safety in units, in sales dollars, and as a percentage? Note: Round the margin of safetv percentage to the nearest whole percentage point. Margin of safety in units: units Margin of safety in dollars: \$ Margin of safety percentage: %
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