PLA so VC DL Cmn 501000 Depr. 15.000 FC 1. The following financial statement amounts related to producing 2,000 units: Direct materials $30,000 Sales 100.000 - Depreciation expense 15,000 DM 30,000 Sales revenue 100,000 20.000 Direct labor (Variable cost) 20,000 Rent expense 15,000 TL Rent. 15,000 a. How much is contribution margin per unit? NI 20,000 0.0001 2000 - 25 b. What is the company's contribution margin ratio? 50% c. What is the company's break-even in units? . Fix cost 30.000 - 1200 unit Contri. Marg. 25 d. What is the company's break-even in sales? 1200 X 25 CO,000 SO -s 601000 or e. What is the company's margin of safety? Proskien Mos= sales-BE sales 100, -60=4OK. f. How many units must the company sell to earn $50,000 profit? FC 30.000 + Taigorrit 501000 - 80000/25 3200 units g. This company has the option of renting a machine for $5,000 a month that will cut direct labor costs by 20%. Assuming production of 2,000 units, should it rent the machine 20000 20% = 4000 save spend 5000 h. How much will it save/lose by renting the machine? 1000 lose i. What is the minimum number this company must produce in order to save money by renting the machine? DL - 201000 / 1000 = 10 X.20 = $2 25 3 500 o 23 CM 23 2. Using the High-low method calculate the VC per unit, FC, and total costs at 2.200 units. Month Units produced Total costs June 1,800 $35,000 1,800 1,200 July $25,000 -T1000 August 1,700 $34,000 800 September 1,000 $20,000 5.Are the following mixed, fixed, or variable costs? Cost 1,000 Units 1,500 Units $10,000 m $12,000 40.000 FIX 40.000 80,000 var 120,000 - stay the same 60,000 mix 70,000