Pharoah Profiles provides testing services to school districts that wish to assess students' reading and mathematical abilities Last year Pharoah evaluated 51,000 math tests and 17.000 reading tests. An income statement for last year follows. Math Testing Reading Testing Total Company Total Per Unit Total Per Unit Sales revenue $30 $782.000 $46 $2.312,000 $1.530.000 1,071.000 21 23 Variable expenses 391,000 1462.000 $459,000 $9 $391.000 $23 Contribution margin 850.000 748.000 Fixed expenses $102.000 Operating income (a) * Your answer is incorrect What is Pharoah's breakeven point in sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars Round Breakeven units and point in dollar to decimal places, eg 5,275.) 20348 Breakeven sales Chris Anderson operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $15 and sells them for $ 20. Chris's current breakeven point is 16,200 hats per year. (a 1) Your answer is correct. Calculate contribution margin per unit. 510 Contribution margin per unit (a2) Your answer is correct. What is Chris's current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous pat) $ Current level of fixed costs 81000 (b) Your answer is correct. Assume that Chris's fixed costs, variable costs, and sales price were the same last year, when he made $28.700 in net income How many hats did Chris sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part) 24400 hats (c) * Your answer is incorrect. What was Chris's margin of safety in units and dollars last year? 10000 hats Margin of safety in units $ 200000 Margin of safety in dollars Carla Vista Designs makes various accessories for pets. Their trademark product, Pet Bed, is perceived to be high quality but not extravagant, and is sold in a variety of pet stores, Margaret Moore, marketing manager, has convinced her boss that they are miting an important segment of the market. "We can increase the quality of the material and design and market PetBed to a higher end clientele." Margaret claims. "We won't compete with our existing product. It's win-win!" Pet Beds sell for $ 120 each. Margaret estimates the gross margin at $40. After working with production engineers and the marketing research team, Margaret has designed a bed that she believes the new market segment will purchase $ 240 for. The production engineers and accountants believe it will cost about $ 120 to make (a) Your Answer Correct Answer Your answer is correct. If Carla Vista Designs uses cost-plus pricing and prices most products like the original Pet Bed, what should be the price of the high-end PetBed? (Round answer to O decimal places, eg. 25,000.) 180 per bed Price of the high-end Pet Bed (b) X Your answer is incorrect If Carla Vista Designs wants to preserve the existing gross margin percentage, what is the target costat a market price of $ 1567 (Round answer to decimal places, eg. 25,000.) $ 160 per bed Target cost
