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E7-38A Comprehensive CVP analysis (Learning Objectives 1, 2, 3, 4, & 5) Ruby Company manufactures and sells a single product. The company's sales and penses
E7-38A Comprehensive CVP analysis (Learning Objectives 1, 2, 3, 4, & 5) Ruby Company manufactures and sells a single product. The company's sales and penses for last year follow: Total ! $150,000 Per Unit $30 ..... Sales ................................................... Variable expenses ................. Contribution margin ............. Fixed expenses .............. Operating income ..... ? 13,500 $ 16,500 1. Fill in the missing ni fill in the missing missing numbers in the preceding table. Use the following questions to help the missing numbers in the table: 2. Answer the follo What is the total contribution What is the total variable expense? How many units were sold? d. What is the per-unit variable expense? What is the per-unit contribution margin? wer the following questions about breakeven analysis: What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: a. How many units must the company sell in order to earn a profit of $48,000? b. Go back to the data given in the table. What is the current margin of safety in units? C. Again, go back to the data in the table. What is the margin of safety in sales dollare
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