Hang ten produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $0.85 per package. Each package sells for $1.70.

Requirement 1. Compute the contribution margin per package and the contribution margin ratio.

Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. (Enter the amount to the nearest cent.)

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

Subtract

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost) = Contribution Per unit

The Contribution Per unit is _____%

Compute the contribution margin ratio. (Enter the ratio as a whole percent.)

Begin by identifying the formula to compute the contribution margin ratio.

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

Subtract

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost) = Contribution Per Ratio

The Contribution Per ratio is _____%

Requirement 2. Find the breakeven point in units and dollars.

Begin by identifying the formula to compute the breakeven sales in units using the contribution margin approach.

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

subtract

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

divided by (Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost) = Break even sales in unit

The Breakeven point in unit is ______

Find the breakeven point in dollars using the contribution margin approach.

Begin by identifying the formula to compute the breakeven point in dollars.

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

subtract

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost)

divided by

(Contribution margin per unit, Fixed Cost, Operating income, Sales Price, Total Variable, Variable cost) = Breakeven sales in dollars

The Breakeven point in dollars unit is ______

Requirement 3. Find the number of packages Hang Ten needs to sell to earn a $25,500 operating income.

The number packages to achieve an operating incomes of $25,500 is _____