Question
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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