Question
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 sprays CM is $5 per unit. Annual fixed cost for the company is $140,000. How many units of spray mouthwash would Orlando Ray sell at the break-even point?
Answer units b. Piniella Company has a break-even point of 5,600 units. At BEP, variable cost is $8,960 and fixed cost is $2,240. If one unit over break-even is sold, what will be the companys pre-tax income?
Answer $ c. Montreal Companys product sells for $10 per bottle. Annual fixed costs are $302,400 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).
Answer units d. York Company has a BEP of 3,920 units. The company currently sells 4,480 units at $65 each. What is the companys margin of safety in units, in sales dollars, and as a percentage? Note: Round the margin of safety percentage to the nearest whole percentage point.
Margin of safety in units: Answer units
Margin of safety in dollars: Answer $
Margin of safety percentage: Answer%
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