Sale Price per Unit $11.00(Paperback) $19.00 (Hard Bound)

Variable Cost per Unit $5.00(Paperback) $11.00 (Hard Bound)

Sales Mix 75% 25% Fixed Costs = $78,000 Complete the table above and answer the following:

What is the weighted-average contribution margin per unit? __

What is the breakeven point in terms of units? __

The following data pertains to Tric Money, LLC

Sales (5,000x$50) = $250,000

Variable Cost (5,000x$30) 150,000

Contribution Margin 100,000

Fixed Costs 60,000

Net Income 40,000

What is the Degree of Operating Leverage? = __

If the company wanted net income to reach $55,000, by what percentage must sales increase? __

Explain how absorption costing can result in overproduction.

Basmarc Corp manufactures miniature speakers. The contribution margin statement below reveals the following:

Manufacturing and selling 688 speakers:

Revenue $86,000

Variable Costs 69,488

Contribution Margin 16,512

Fixed Cost 9,000

Net Income 7,512

A private club wants to purchase 500 speakers for $105 each. This would be a special order. Should Basmarc Corp accept the order? Yes __ No__

What would be the very minimum price per unit Basmarc Corp should accept? __

Use the following data to construct two income statements. One statement is to be based on Absorption Costing and the other Variable Costing.

Direct Material = $15 per unit

Direct Labor = $22 per unit

Variable OH = $6 per unit

Fixed OH = $900,000

Expected units produced/yr = 85,000

Units sold = 60,000

Price per unit sold = $85

Variable selling & administrative cost = $4 per unit sold

Fixed selling & administrative cost = $100,000