Lanning Company sells 170,000 units at $50 per unit. Variable costs

are $30 per unit, and fixed costs are $1,000,000.

Determine

(A) the unit contribution margin,

(B) the unit contribution margin ratio (%),

(C) income from operations. Break-even

Bigelow Inc. sells a product for $1,300 per unit. The variable cost is $826 per unit, while fixed costs are $3,220,000. Determine

(A) the break-even point in sales units

(B) the break-even point if the selling price were increased to $1,332 per unit.

(C) the break-even point if the variable costs increased to $835 per unit.

Target profit Ramirez Company sells a product for $90 per unit. The variable cost is $65 per unit, and fixed costs are $4,750,000.

Determine

(A) the break-even point in sales units and

(B) the sales units required for the company to achieve a target profit of $450,000

Cromwell Furniture Company manufactures sofas for distribution to several major retail chains. The following costs are incurred in the production and sale of sofas: Classified the following costs in the three types presented placing and X in one of the columns COST DESCRIPTION Fixed Cost Variable Cost Mixed Cost

A Fabric for sofa coverings

B Wood for framing the sofas

C Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour

D Salary of production supervisor

E Cartons used to ship sofas

F Springs for seat cushions

G Consulting fee of $120,000 paid to efficiency specialists

H Electricity costs of $0.13 per kilowatt-hour

I Salesperson's salary, $80,000 plus 4% of the selling price of each sofa sold J Foam rubber for cushion fillings

K Janitorial supplies, $2,500 per month

L Employer's FICA taxes on controller's salary of $180,000

M Salary of designers

N Wages of sewing machine operators

O Sewing supplies

P Rent on experimental equipment, $50 for every sofa produced

Q Straight-line depreciation on factory equipment

R Rental costs of warehouse, $30,000 per month

S Property taxes on property, plant, and equipment

T Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000

For the coming year, Culpeper Products Inc. anticipates a unit selling price of $160, a unit variable cost of $120, and fixed costs of $900,000. Instructions

1. Compute the anticipated break-even sales (units).

2. Compute the sales (units) required to realize income from operations of $350,000.

3. Construct a cost-volume-profit chart, assuming maximum sales of 45,000 units within the relevant range.

4. Determine the probable income (loss) from operations if sales total 35,000 units