Question
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,050,000 pages at a price of $0.1 each in the coming year.
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,050,000 pages at a price of $0.1 each in the coming year. Product costs include:
Direct materials | $0.015 |
Direct labor | $0.005 |
Variable overhead | $0.002 |
Total fixed overhead | $176,940 |
There is no variable selling expense; fixed selling and administrative expenses total $36,000.
Required:
In your computations that involve the contribution margin ratio, do not round the ratio.
1. Calculate the break-even point in units. fill in the blank 1 units
2. Calculate the break-even point in sales revenue. $fill in the blank 2
3. Calculate the margin of safety in units for the coming year. fill in the blank 3 units
4. Calculate the margin of safety in sales revenue for the coming year. $fill in the blank 4
5. What if the total selling and administrative expenses are reduced to $12,600? Recalculate the following:
a. Break-even point in units | fill in the blank 5 | units |
b. Break-even point in sales revenue | $fill in the blank 6 | |
c. Margin of safety in units for the coming year | fill in the blank 7 | units |
d. Margin of safety in sales revenue for the coming year | $fill in the blank 8 |
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