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Ouestion 2 (10 points) Adm2341 Inc. has provided the following unit production and sales information for its only product: Direct materials Direct labour MOH
Ouestion 2 (10 points) Adm2341 Inc. has provided the following unit production and sales information for its only product: Direct materials Direct labour MOH variable Sales commissions Selling price $30 $42 $18 $15 $150 The annual total fixed costs are $855,000. REOUIRED: l. Calculate the contribution margin per unit and in %. 2. If the company wants to attain an operating profit of $90,000, calculate the number of units the company must sell to reach its goal. What is the margin of safety at this sales level? 3. The company is considering two options : Option l: sell 42,000 units with a sale price of $150 per unit. Option 2: sell 40,000 units at $155 per unit. Which option will provide the highest operating income? 516 Q/
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