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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $25 unit. Variable expenses are $12 per unit, and fixed expenses total $260,000 per
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $25 unit. Variable expenses are $12 per unit, and fixed expenses total $260,000 per year. Its operating results for last year were as follows: per Sales Variable expenses Contribution margin Sales Variable Costs Contribution Margin # Fixed expenses Net operating income 5a. What is the contribution margin ratio? (8 points) Contribution Margin Ratio: #### ####### $52,000 Unit Contribution Margin Sales Per Unit 5b. Use the contribution margin ratio to determine the break-even point in sales dollars. (6 points) Fixed Costs Contribution Margin Ratio
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