Exercise 4-14 Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $900. The variable cost of production is $300 and the fixed cost per month is $60,000. For November, the company expects to sell 125 pairs of speakers.

Calculate expected profit.

Expected profit

$

Calculate the contribution margin ratio, Breakeven sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio
Breakeven sales		$
Expected sales		$
Margin of safety		$