Finley Corporation has monthly fixed costs of $70,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin Product 1 $ 15 $ 9 Product 2 20 4 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent for Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.)

2. Wadena Search and Rescue estimates the monthly cost of responding to emergency calls to be $90,000, plus $450 per call.

a-1. In a month in which the company responds to 90 emergency calls, determine the estimated total cost of responding to emergency calls.

a-2. In a month in which the company responds to 90 emergency calls, determine the estimated average cost of responding to emergency calls.

b. Assume that in a given month, the number of emergency calls was unusually high. Would you expect the average cost of responding to emergency calls during this month to be higher or lower than in other months?

3. The following is information concerning a product manufactured by Ames Brothers.

Sales price per unit	$	66
Variable cost per unit		43
Total fixed manufacturing and operating costs (per month)		390,000

a. Determine the unit contribution margin.

b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.)

c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)

8. 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.

9.

EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the results of the company's operations for the current month. At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000.

a. Calculate the contribution margin per unit. (Round your answer to 2 decimal places.)

b. Calculate the company's margin of safety if monthly sales total 45,000 units.

c. Estimate the company's monthly operating loss if it sells only 38,000 units.

d-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.)

d-2. Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.)

Unit sales price	$	30
Variable cost per unit		6
Fixed costs per year		360,000

a. Determine the contribution margin ratio.

b. Determine the sales volume (in dollars) required to break even.

c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000.

d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.

e. Determine the operating income if annual sales total 60,000 units.