Current Attempt in Progress

Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one

of the composite models of the kayak division. They have provided the following production and operational costs necessary to

produce one composite kayak.

Bill and Diane have asked you to provide a cost$-$volume$-$profit analysis, to help them finalize the budget projections for the upcoming

year. Bill has informed you that the selling price of the composite kayak will be $$2,300.$

$($b$)$

Determine the unit contribution margin.

Contribution margin

$

per unit

Using the unit contribution margin, determine the break$-$even point in units for this product line.

Break$-$even point

units

eTextbook and Media

Assume that Current Designs plans to earn net income of $$223,300$ on this product line. Using the unit contribution margin, calculate the number

of units that need to be sold to achieve this goal.

Number of units to be sold

units

eTextbook and Media

Based on the most recent sales forecast, Current Designs plans to sell $1,000$ units of this model. Calculate the margin of safety and the margin of

safety ratio. $($Round percentage to $1$ decimal place, $25\mathrm{.}5\%.)$

Margin of safety

$

Margin of safety ratio