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MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $1,700; factory rent $3,900 Mixed costs: utilities $2,200 + $7.00 per
MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor's salary $1,700; factory rent $3,900 Mixed costs: utilities $2,200 + $7.00 per unit Variable costs per unit: manufacturing labor wages $23.50; supplies used in production $10.25; packaging cost $4.00; warranty cost $4 Required: Compute total costs to be incurred for a week with 2,820 units of activity. (Do not round intermediate calculations.) Total cost Current operating income for Bay Area Cycles Co. is $50,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $200,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio %
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