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Fixed overhead costs are $40,000 annually and fixed selling and administrative cost are $32,000 annually. selling price is $32.00 per unit. A. Compute the following

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Fixed overhead costs are $40,000 annually and fixed selling and administrative cost are $32,000 annually. selling price is $32.00 per unit. A. Compute the following amounts: Selling price per unit Total variable costs per unit Contribution margin per Contribution margin ratio Total annual fixed costs Break-even point in units Break-even point in dollars B. Snap Company is currently selling 15.000 units Compute the following amounts: Net Income Margin of Safety in Dollars Margin of Safety Ratio What use can management make of the margin of safety information? C. Compute the following amounts: If Snap Company would like to have S80,000 of net income, how many units would have to be sold? If Snap Company would like to have $64,000 of net income, how many units would have to be sold? By what amount must fixed costs be decreased if Snap Company would like to have $64,000 of net income, but can sell only 16,000 units? D. Snap Company has a plan under which the selling price would be decreased by $2 per unit and fixed costs would be increased by $3,000. Compute the following amounts under this new plan: New break-even point in units. Unit sales required to achieve a $48,000 target net income The amount by which selling price must be increased if Snap would like to have $48,000 of net income, but can only sell 15,000 units If this plan also caused an increase in unit sales of 20% over the current sales of 15,000 units, should this plan be accepted? Why or why not? If this plan also caused an increase in unit sales of 30% over the current sales of 15.000 units, should this plan be accepted? Why or why not

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