Question
Information below is for the production and sale of 5,000 units for this year. The sales price is $300 per unit. Sales Variable costs
Information below is for the production and sale of 5,000 units for this year. The sales price is $300 per unit. Sales Variable costs Metal for casing Wages of assembly workers Stands for units Fixed costs Taxes on factory Factory maintenance Factory machinery depreciation Administrative salaries $ 1,500,000 $ 285,000 440,000 175,000 $ 9,000 18,000 78,000 135,000 1. Compute contribution margin per unit and contribution margin ratio. Contribution margin per unit Contribution margin ratio % 2. Compute the break-even points in units and in sales dollars. Break-even in units units Break-even in sales dollars 3. Compute the margin of safety in dollars and in percent. Margin of safety in dollars Margin of safety (%) %
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
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