CVP; multiproduct Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an $8 contribution margin, and each money clip has a $6 contribution margin. Mel's incurs fixed cost in the amount of $180,000. The selling prices of wallets and money clips, respectively, are $30 and $15. The corporate-wide tax rate is 40 percent. a. How much revenue is needed to break even? $ 1,638,000 X How many wallets and money clips does this represent? 46,800 X wallets 15,600 * money clips b. How much revenue is needed to earn a pre-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. $ 1,155,000 c. How much revenue is needed to earn an after-tax profit of $150,000? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. $ 3,913,000 X CVP Austin Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240. a. What is the contribution margin per unit? $ 108 b. What is the contribution margin ratio? 1,060 X % c. What is the break-even point in units? 580 units d. Using the contribution margin ratio, what is the break-even point in sales dollars? $ 104,400 e. If Austin Automotive wants to earn a pre-tax profit of $51,840, how many units must the company sell? 1,060 units