Question
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,070,000 pages at a price of $0.08 each in the coming year.
Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 3,070,000 pages at a price of $0.08 each in the coming year. Product costs include: Direct materials $0.012 Direct labor $0.004 Variable overhead $0.002 Total fixed overhead $135,500 There is no variable selling expense; fixed selling and administrative expenses total $35,000. 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 $15,160? 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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