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Part Two Contribution Margin James and Jackie Simpson set up a company called Heavenly Sounds Incorporated. They provide music CDs around the Virginia Beach, Virginia
Part Two Contribution Margin
James and Jackie Simpson set up a company called Heavenly Sounds Incorporated. They provide music CDs around the Virginia Beach, Virginia area for various musical artist and aspiring musical artists. The company sold CDs and they sell for $ each for the year ended December The tax rate is
Variable production costs
Plastic for casing $
Wage of assembly workers $
Labeling $
Selling and Administrative$
Fixed manufacturing costs
Rent on Factory $
Factory maintenance $
Factory machine depreciation $
Fixed selling and administrative costs
Lease of equipment $
Accounting staff salaries $
Administrative management salaries $
Required: Please compute the following:
Compute the contribution margin.
Compute the contribution margin ratio.
Compute the breakeven in sales units.
Compute the breakeven in sales dollars.
Compute the margin of safety in units.
Compute a contribution income statement for the year end.
Compute the unit sales required for a monthly aftertax profit of $
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