Question
E20.7: Murder to Go! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per unit information relating to
E20.7: Murder to Go! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per unit information relating to the manufacture and sale of this product.
Unit sales price $30
Variable Fixed Cost 6
Fixed cost per year 360,000
Determine the following showing as part of your answer the formula that you used in your computation. For example, the formula used to determine the contribution to ration (part a) is:
Contribution Margin Rate = Unit sales price - variable cost per unit
unit sales Price
A. Contribution margin ration
B. Sales volume ( in dollars ) required to break even
C. Sales volume (in dollars) required to earn an annual operating income of $440,000.
D. The margin of safety (in dollars) if annual sales total 60,000 units.
E. Operating income if annual sales total 60,000 units.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started