Question
Pronghorn, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $330 and the fixed cost
Pronghorn, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $330 and the fixed cost per month is $49,647. For November, the company expects to sell 118 pairs of speakers.
Calculate expected profit.
Expected profit$
Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars.(Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
Contribution margin ratio
Break-even sales$
Expected sales$
Margin of safety$
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