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Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the companys costs is as follows Variable manufacturing cost per

Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the companys costs is as follows

Variable manufacturing cost per unit $6

Variable selling and administrative cost per unit $2

Fixed manufacturing overhead per month $300,000

Fixed selling and administrative cost per month $600,000

a) Determine the companys break-even point in units

b) Determine the companys break even sales volume in $

c) Calculate unit contribution margin

d) Determine the sales volume (in $) required for a monthly operating income of $1,200,000

e) Estimate the companys monthly operating loss if it sells only 50,000 units of wire rakes

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