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Draaksh Corporation sells premium quality wine for $140 per bottle. Its direct materials and direct labour costs are $27 and $15.00 respectively per bottle. It
Draaksh Corporation sells premium quality wine for $140 per bottle. Its direct materials and direct labour costs are $27 and $15.00 respectively per bottle. It poys its direct labour employees a woge of $30 per hour. The company performed a regression analysis using the post 12 months' date and established the following monthly cost equation for menufacturing overhead costs using direct labour-hours as the overhead allocation bose: y=$157,200+$25.50x Dracksh believes that the obove cost estimates will not substantially change for the next fiscal year. Given the stiff competition in the wine market, Droaksh budgeted an amount of $35,600 per month for sales promotions; additionally, it has decided to offer s sales commission of $7.25 per bottle to its sales personnel. Administrative expenses are expected to be $25,800 per month. Required: 1. Compute the expected total variable cost per bottle and the expected contribution margin ratio. 2. Compute the annual break-even sales in units and dollars. (Round your Intermediate and final answers to the whole number.) 3. Dracksh has budgeted sales of $9.3 million for the next fiscal year. What is the company's margin of safety in dollars and as a percentege of budgeted sales? (Round your Intermedlate and final answers to the whole number.) 4. This part of the question is not part of your Connect sssignment
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