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Gloria Meeham is considering opening a window tinting business. She estimates that the following costs will be incurred during the first year of operations: Rent

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Gloria Meeham is considering opening a window tinting business. She estimates that the following costs will be incurred during the first year of operations: Rent - $3000 Equipment depreciation - $5,000 Wages - $3,500 (based on 500 windows tinted on the prior year) Tinting - $3.00 per square foot (where each window takes 4 square feet of tint) Gloria anticipates that the retal price she will charge of each window tint is $35.00. Instructions: 1. Determine the variable costs per tint (unit) and total fixed costs. 2. Determine the break-oven point in number of windows to be tinted. 3. How many windows noed to be tinted to earn income of $14,000 ? 4. What is the contribution margin ratio per unit? 5. What is the margin of safety in dollars if the company sells 800 windows

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