Problem 3)

Sticky Products, Inc. manufactures a glue stick that sells for $1.00 per unit. Management recently finished analyzing the results of the company's operations for the current month. Management noticed that at a break-even point of 25,000 units, the company's total variable costs per unit were $0.15 and its total fixed costs amount to $21,250.

Calculate the contribution margin.

Calculate the contribution margin ratio

Calculate the company's margin of safety if monthly sales total 30,000 units.

Estimate the company's monthly operating loss if it sells only 10,000 units.

Compute the total cost per unit at a production level of (1) 20,000 pens per month and (2) 30,000 glue stick per month. Explain the reason why total cost per unit changed between production levels.

What sales volume in units would Stick Products, Inc. need to sell to earn $75,000 (round up to next full unit)?

What is the companys break-even point in units if total variable costs per unit were $0.25?