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GoAnyWhere Cases Ltd, makes a number of different suitcases. For each Family Suitcase the following applies: Family Suitcase per unit Materials $ 25 Labour ('5
GoAnyWhere Cases Ltd, makes a number of different suitcases. For each Family Suitcase the following applies: Family Suitcase per unit Materials $ 25 Labour ('5 14 Variable Overheads 3 'l2 Total Fixed Overheads based on units sold $ 15 Total Costs $ 66 Selling price $ 80 Current Annual Sales in Units 5000 The contribution margin per Family Suitcase in dollars is $ (to 2 decimal places) The contribution margin ratio per Family Suitcase in dollars % (to 2 decimal places} The Break-even units for Family Suitcases is cases The current profit is $ (to 2 decimal places) A new machine is being considered which will decrease labour costs and allow cases to be made more efficiently. The new machine will additional sales due to extra production and will annual depreciation costs but will decrease labour costs as follows: Family Suitcase per unit Additional Machine Annual Depreciation $ 5,000 Expected % increase in sales 9% Decrease In labour -$ 2 The Break even units after purchasing the new machine will be cases The new profit will be S (to 2 decimal places)
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