Question
Question Content Area Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety Zebra Company manufactures custom-designed skins (covers) for iPods and other portable
Question Content Area
Contribution Margin, Break-Even Units, Contribution Margin Income Statement, Margin of Safety
Zebra Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $10.80 per custom skin, the price is $16, and fixed costs are $66,560.
Required:
1. What is the contribution margin for one custom skin? Round your answer to the nearest cent. $fill in the blank 1 per custom skin
2. How many custom skins must Zebra Company sell to break even? fill in the blank 2 custom skins
3. If Zebra Company sells 13,000 custom skins, what is the operating income? $fill in the blank 3
4. Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.
Margin of safety in units | fill in the blank 4 | units |
Margin of safety in sales revenue | $fill in the blank 5 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started