Question
Munoz Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 5,000 and 11,000 trophies per
Munoz Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 5,000 and 11,000 trophies per year. The following cost data apply to various activity levels. Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round your intermediate calculations and per unit amounts to 2 decimal places.) Number of Trophies 5,000 7,000 9,000 11,000 Total costs incurred Fixed $ 64,000 Variable 42,000 Total costs $ 106,000 Cost per unit Fixed $ 12.80 Variable 8 40 Total cost per trophy S 21.20 Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs $ 175 $ 80 $665,000 Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $171,000. d. Determine the margin of safety in units, sales dollars, and as a percentage.
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