Rap Album Eminem Chocolates Slim Shady Sales $500,000 Variable Costs $250,000 Contrib. Margin $250,000 $200,000 $120,000 $80,000 $300,000 $210,000 $90,000 Company Totals $1,000,000 $580,000 Fixed Costs Net Oper, Income $420,000 $294,000 $126,000 a) A) Determine the breake-even points for this company express as sales dollars of Rap Album, chocolates, and Slim Shady. B) Calculate the margin of safety in dollars for the album, chocolates, and Slim Shady C) What is the degree of operating leverage at the company? D) Is the sales mix appropriate ? why or why not? |