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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.

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